In a significant shift in global energy dynamics, India has emerged as the largest importer of Russian oil, surpassing China. According to recent data, India imported 2.07 million barrels of Russian oil per day in July, a 12% increase from last year. This surge in imports has been driven by Indian refiners taking advantage of discounted Russian oil following Western sanctions against Moscow.

The data shows that Russian crude now accounts for a record 44% of India’s total oil imports, up from 36% in June. This increase is a result of Indian refiners’ ability to negotiate better prices for Russian oil, which has been sold at a discount due to Western sanctions. The discounts have made Russian oil an attractive option for Indian refiners, who are looking to maximize their profits.

China, which was previously the largest importer of Russian oil, saw its imports fall to 1.76 million barrels per day in July. This decline is attributed to lower profit margins for Chinese refiners, who have been struggling to maintain their refining capacity due to high crude prices.

India’s increased imports of Russian oil have helped to keep global prices in check and control inflation. The country’s trade with Russia has increased significantly since Russia began its war against Ukraine in February 2022, mainly due to oil and fertilizer imports.

The Indian refining source stated, “India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions.” This indicates that India is likely to continue importing Russian oil at high levels, provided the sanctions regime remains unchanged.

The shift in India’s energy imports has significant implications for global energy markets. As the world’s third-largest oil consumer, India’s decisions have a substantial impact on global oil prices. The increased imports of Russian oil also highlight the growing energy partnership between India and Russia.

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