Russia's market share in India's import basket increased from less than 1% at the commencement of the Russia-Ukraine crisis in February 2022 to 1.62 million barrels per day in February, accounting for 35% of total imports.
India's crude oil imports from Russia reached a record 1.6 million barrels per day in February, surpassing combined imports from regular suppliers Iraq and Saudi Arabia.
According to energy cargo tracker Vortexa, Russia remained the single largest supplier of crude oil, which is transformed into gasoline and diesel at refineries, for the fifth consecutive month, supplying more than one-third of the oil India imported.
Refiners Continue to Take Up Ample Russian Shipments that are Cheaper than Other Grades
Russia's market share in India's import basket increased from less than 1% at the commencement of the Russia-Ukraine crisis in February 2022 to 1.62 million barrels per day in February, accounting for 35% of total imports.
India, the world's third-largest crude importer after China and the United States, has been snatching up discounted Russian oil after some in the West avoided it as a means of punishing Moscow for its invasion of Ukraine.
Russian imports have increased at the expense of Saudi Arabia and the United States. Oil imports from Saudi Arabia plummeted 16% month on month, while those from the United States fell 38%.
According to Vortexa, Russia currently purchases more oil than Iraq and Saudi Arabia combined – India's staple oil suppliers for decades.
Iraq, which Russia has dethroned to become India's largest oil supplier, delivered 9,39,921 barrels per day (bpd) of oil in February, while Saudi supplied 6,47,813 bpd.
With 4,04,570 bpd, the UAE surpassed the United States to become the fourth largest supplier. The US supplied 2,48,430 barrels per day, down from 3,99,914 barrels per day in January.
Iraq and Saudi Arabia's supplies are at their lowest in 16 months.
"Indian refiners are benefiting from higher refining margins as a result of processing discounted Russian crude," said Serena Huang, Vortexa's head of Asia-Pacific analysis.
"As long as the economics are favourable and financial and logistical services to support the trade are accessible, refiners' import appetite for Russian barrels is expected to stay solid."
Russia is supplying record amounts of crude oil to India to fill the void left by the European Union's December ban on imports.
The EU banned Russian seaborne oil in December and imposed a USD 60-per-barrel price restriction, preventing other countries from utilising EU shipping and insurance services unless oil is sold below the cap.
According to industry officials, Indian refiners are utilising the UAE's dirham to pay for oil imported at a price less than USD 60.
"Almost a quarter of Russian imports are now paid in dirham," a government official said.
Russia's market share in India's import basket increased from 0.2 percent prior to the outbreak of the Russia-Ukraine conflict to 35% in February 2023.
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