India gets 40% of crude oil imports from Russia
Volumes have reached an average of 1.6 million barrels per day, an increase of 1,000% compared to 2021
During the past three months, India has relied on Russia for 40 percent of its seaborne crude oil imports.
"Year-to-date, volumes have reached an average of 1.6 million barrels per day (mbpd), an increase of 1,000 percent compared to 2021, before Russia invaded Ukraine," says Niels Rasmussen, Chief Shipping Analyst, BIMCO.
The increased import of Russian oil has contributed to a higher average sailing distance for crude oil tankers discharging in India, the update added. "Year-to-date, the average sailing distance has risen by 10 percent, resulting in an eight percent increase in total tonne miles despite a two percent fall in volumes. Compared to 2021, the average sailing distance is up 25 percent."
Indian buyers started increasing sourcing from Russia in 2022. The EU and the U.S. combined used to buy about 65 percent of Russia’s seaborne crude oil exports. This was before the implementation of sanctions on Russian oil exports following its invasion of Ukraine, and Russia has since found new buyers, the update added.
“With the exception of a spike and subsequent dip in mid-2023, Russian crude oil’s share of Indian seaborne imports has climbed steadily since mid-2022. China has also increased its share but India has been the biggest buyer since mid-2023, regularly taking 35-40 percent of Russian seaborne crude oil exports,” says Rasmussen.
India used to buy nearly 70 percent of its seaborne crude oil from countries in the Persian Gulf. However, the increase from Russia has reduced those volumes and India now imports only 45 percent from the region. Instead, the region has increased exports to, for example, North Europe and the Mediterranean.
“As long as the sanctions are in place, the Russia-India trade is likely to continue at the current level. However, according to the International Energy Agency, India’s demand for oil is expected to continue to increase while Russia’s production is unlikely to rise. India may therefore have to turn to other suppliers to satisfy its demand,” says Rasmussen.
