India’s imports of sanctioned Russian oil soar to new heights
India’s foreign minister vowed last month that cooperation between Moscow and New Delhi would not be a ‘temporary phenomenon’
Indian imports of Russian oil sharply rose in May to an unprecedented level of 2.1 million barrels per day, according to tanker data.
The data indicates a growth of 14.7 percent from April. The country’s total oil imports in May rose to five million barrels per day, a jump of 5.6 percent from April and a 5.9 percent rise from one year ago.
The share of Russian oil in Indian imports rose to 41 percent, the data adds.
It also shows that Saudi Arabia’s oil supply plummeted to its lowest in ten months after Aramco hiked its prices for a second time last month.
According to a preliminary report by the Indian Oil Ministry, oil imports are at a record high.
“Russian oil was available in plenty and at better discounts last month due to lower demand from China,” an official at an Indian oil refinery told Reuters on 21 June.
Meanwhile, Indian refiners bought the equivalent of 176,000 barrels from the US daily.
Russia has continued serving as India’s top oil supplier, followed by Iraq and Saudi Arabia.
As two important members of the BRICS group, cooperation between the two countries has surged recently.
At the end of the fiscal year in March 2024, trade between Russia and India had reached $65.7 billion, a 33 percent jump from the previous year.
Moscow and New Delhi are also holding talks on the joint production of military equipment and have recently boosted military cooperation.
Firstpost reported last month that Russia recently purchased nearly $4 billion in Indian-made defense equipment and arms from New Delhi using the Indian Rupee.
New Delhi has also helped Moscow circumvent harsh western sanctions on Russia.
As a result of these sanctions, Russia was among 22 other nations whose banks were allowed to open specific Vostro accounts in India to conduct trade in local currency. This represents efforts by BRICS countries to move away from the US dollar.
Energy cooperation between the two countries is surging despite heavy US and western sanctions on Russian crude oil.
“For long, we have looked at Russia from a political or security perspective. As that country turns eastwards, fresh economic opportunities are presenting themselves ... the spike in our trade and new areas of cooperation should not be regarded as a temporary phenomenon,” Indian Foreign Minister Subrahmanyam Jaishankar saidlast month.