Russian oil exports to India fell to less than 25% of the country’s total imports in December, from 34% in November, hitting the lowest in 38 months, The Hindu reported, citing data from the Indian Ministry of Commerce and Industry.
Russian oil purchases in December were worth $2.71 billion, down from $3.72 billion a month earlier, and from a high of $5.87 billion in May 2024. In volume terms, India imported 5.8 million tons of Russian crude in December, or about 1.39 million barrels daily. This was the lowest monthly total since February last year, the data showed.
The drop follows the imposition of U.S. sanctions on Russia’s two biggest oil exporters, Rosneft and Lukoil. The sanctions prompted a sharp increase in purchases of U.S. crude, but the volumes of that crude were much lower than what Indian refiners bought from Russia. For December, U.S. oil imports totalled 1.1 million tons, which in value terms stood at $569.3 million. The December total was also a 60.5% drop on November oil imports from the United States, The Hindu noted, but a 31% increase on December 2024.
The United States wants to choke India’s imports of Russian crude and has made it a condition for the trade deal that the two countries are discussing. India, however, has been wary of making official statements about any such commitments. The country relies on imports for 85% of its oil needs and is highly price-sensitive as a result. The reason Russia became its top supplier over the last four years is precisely this price sensitivity, which made sanction-related discounts on Russian crude a top consideration in purchasing decisions. The grades Russia produces are also more compatible with Indian refineries than the predominantly light, sweet crude that the United States produces.
By Irina Slav for Oilprice.com
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