Moscow accounted for half of New Delhi’s June shipments as domestic refiners topped up supplies despite looming sanctions
The majority of India’s crude import requirements this month are likely to be met by Russia, following a similar trend in June, as refiners scramble to stock up as fresh US sanctions loom.
Russia accounted for half of India’s June crude imports. In July, these will surpass 5 million barrels per day (mbd) with Russia accounting for around 2.6-2.7 mbd, The Hindu Business Line reported, quoting an unnamed senior executive of a refiner.
Last month’s rise came despite a sanctions waiver from the US ending halfway through the month as the world’s third-largest energy importer looks to keep its domestic market supplied. The reliance on Russian crude became more notable for India following the disruption to the passage of oil through the Strait of Hormuz, triggered by the US and Israel’s attack on Iran.
The trend will likely continue in August as the first-half supply contracts have already been made, the report said.
This comes as a bipartisan group of US senators is pushing a bill to impose 100% tariffs on the top five countries, which includes India and China, buying Russian oil and gas. The aim, the group says, is to cut Moscow’s revenues from energy sales and pressure it to end the Ukraine conflict. The bill, originally championed by the late Senator Lindsey Graham, has the support of President Donald Trump.
However, in a sign of how the bill will protect the interests of US allies while targeting emerging powers, it has tariff exceptions for Japan, France, Hungary, and Belgium – the other top buyers of Russian gas.
China has said that it will take necessary measures to “firmly defend the legitimate rights and interests of Chinese businesses and citizens” if the sanctions are levied.
India does not have many alternative suppliers capable of replacing Russian crude at the same scale, reliability, and economics, Sumit Ritolia, Lead Research Analyst for Refining & Modeling at Kpler, told the Hindu Business Line.
