InvestorQ : Is it true that Indian crude imports from Russia have gone up sharply in recent months?
Mitali Bhutta made post

Is it true that Indian crude imports from Russia have gone up sharply in recent months?

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4 weeks ago
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In fact, increased is an understatement. India has not only substantially increased its crude oil imports from Russia but now Russia is slowly becoming the predominant supplier for oil to India. The situation appears to have suddenly changed in the last few months and if you look at the Russian oil import numbers, they are really staggering. Here is a quick look at how the Russia story is panning out for Indian oil imports.

For the month of May 2022, India imported 24 million barrels of crude from Russia as against a mere 7.2 million barrels in April 2022. It was much lower at 3 million barrels in March 2022. On a yoy basis, the growth is almost exponential. In June, India is likely to get 28 million oil barrels from Russia i.e. 1.05 million bpd. In terms of India basket share, Russian oil is up from 2% of India basket last year to nearly 25% in June 2022.

What were the triggers? With most countries banning Russian oil imports and the EU also planning to join in from December 2022, India and China are absorbing most of the Russian oil. In fact, Russia is offering discounts up to $35 or $40 per barrel of oil to entice India and China to buy Russian oil. Effectively, Russia gets over its surpluses while India is able to keep the price of crude oil in check and reduce their import bills. That is like hitting two birds with just one stone.

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