India’s crude oil imports from Russia are showing signs of recovery in March, following a decline earlier this year after the U.S. imposed sanctions on Russian oil trade in January.
According to ship-tracking data and trading sources, traders have secured more non-sanctioned tankers to deliver Russian crude to India. Additionally, the price of Russia’s flagship Urals grade has fallen below the $60 per barrel price cap set by the G7, allowing shipments involving Western companies, Reuters reports.
Since Russia’s invasion of Ukraine and subsequent Western sanctions on Russian oil, India, along with China, has become a significant buyer of Russian crude. Russia, in turn, has become India’s largest oil supplier, making India the world’s third-largest oil importer.
Earlier this year, Indian refiners sought alternative sources after the U.S. sanctions targeted hundreds of tankers and oil traders in January.
The Biden administration’s sanctions on Russian oil reduced the availability of non-sanctioned tankers for these transactions. As a result, daily rates for non-sanctioned tankers on the route from western Russia to India have risen to their highest levels in a year, encouraging more shippers to offer such shipments, according to Reuters’ sources.
India is on track to import 1.54 million barrels per day (bpd) of Russian crude, mainly the Urals grade, in March, based on data from analytics firm Kpler, as reported by Reuters. Over the past three months, India’s average imports from Russia have ranged between 1.1 million and 1.2 million bpd, according to Kpler.
In response to the U.S. sanctions, India has adjusted its network of oil traders, insurers, and vessel owners to ensure its continued purchases of Russian oil.
India remains committed to buying Russian oil as long as it is priced below the $60 per barrel cap, delivered via non-sanctioned tankers, and free from involvement by any sanctioned companies or individuals, Indian officials have stated.
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