Oil imports from Russia up nearly 3-fold



Value of oil imports from Russia during the April-June period stood at $12.36 billion, 170.66% higher on a year-on-year basis.

Crude oil imports from Russia rose nearly three-fold in the first quarter of this fiscal compared to the same period of FY23, according to government data.

Oil imports from Russia during the three months to June stood at $12.36 billion, 170.66% higher on a year-on-year basis.

During the same period last fiscal, the imports stood at $4.57 billion, showed data from the ministry of commerce and industry.

The rise in imports from Russia coincides a decline in the share of oil imports from West Asia.

The value of imports from Iraq, which has traditionally been the top supplier to India declined 37.96% to $6.55 billion from $10.55 billion during Q1FY23. Imports from Saudi Arabia declined 23.64% to $5.49 billion while those from the UAE slumped 63.11% to $1.71 billion.

During the same period last year, Iraq was India’s top source of crude oil.

India has raised its imports from Russia since last year as the country offered discounted oil amid sanctions from the West in reprisal for its invasion of Ukraine.

In FY22, Russian oil accounted for only 2% of India’s total oil imports; in FY23, it made up around one-fourth of the 235.52 million tonnes of crude oil imported by India.

Total oil imports rose by nearly 11% in FY23 from 212.28 mt in the previous fiscal.

The imports from Russia continue to increase in this fiscal although discounts offered by Russia have shrunk in the past few months.

The rise in imports from Russia also comes at a time when Russia has announced a cut in production by 50,000 barrel per day starting this month.

The war created volatility in the global energy market with prices surging to $130 per barrel last year.

They have however declined from the multi-year highs.

Post the announcement of voluntary cuts by Russia and Saudi Arabia, the market has witnessed some volatility of late, with the October contract of Brent crude on the Intercontinental Exchange at $85.28 per barrel, lower by 1.08% from its previous close.

Data from the Petroleum Planning and Analysis Cell (PPAC) showed that as of 11 August, the price of the crude basket in India stood at $88.03 per barrel. Although Russian oil now accounts for a significant part of India’s total crude import basket, the lower cost of imports is yet to be reflected in the basket because the basket does not include Russian crude.In another development, Russia plans to raise the export levy paid by its oil producers in September to the highest level this year, in a bid to boost state coffers as the price of the nation’s crude surges.Moscow plans to increase the oil export duty to $21.40 per tonne next month, up by more than a quarter from August, according to a government notification. That equates to around $2.92 a barrel.

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