India’s Russian fossil fuel imports hit record

AI Summary

India bought a record €6.4 billion in Russian fossil fuels in October, largely crude oil, while Russia's fossil-fuel export revenues also reached their highest monthly level since December 2022. The report highlights the role of Indian refineries and sanctioned shadow tankers in moving Russian oil products, alongside the impact of higher prices and the energy crisis around the Strait of Hormuz.

India was the second-largest buyer of Russian fossil fuels in October, purchasing hydrocarbons worth €6.4 billion, according to a monthly analysis by the Centre for Research on Energy and Clean Air (CREA). It was India’s highest monthly total in data going back to January 2022.Crude oil accounted for 91% of India’s purchases at €5.8 billion. Coal imports were worth €333 million, while oil products accounted for €232 million.Indian refineries raise Russian crude purchasesIndia’s imports of Russian crude oil rose 10% from September. Imports increased at all three of the country’s largest importing refineries—Vadinar, Jamnagar and Paradip.Imports at Vadinar rose 12% month-on-month, while Jamnagar and Paradip recorded increases of 22% and 28%, respectively. The rise made Jamnagar the biggest importer of seaborne Russian crude in October.Refineries in India, Turkiye and Brunei that use Russian crude exported oil products worth €1.6 billion to countries imposing sanctions in October. The destinations included the European Union, Australia, the US and New Zealand.Ten of the 12 shipments of oil products from refineries processing Russian crude that reached EU ports in October departed from India’s Jamnagar refinery. The remaining two shipments came from Turkiye’s STAR refinery.CREA estimated that €389 million worth of the oil products exported by these refineries were made from Russian crude. Exports from the refineries to sanctioning countries rose 21% in volume terms from September.Russia’s fossil fuel earnings reach four-year highChina remained the largest buyer of Russian fossil fuels, purchasing €10.7 billion worth of hydrocarbons in October. The European Union was the third-largest buyer at €2.2 billion, followed by Turkiye at €1.1 billion and South Korea at €488 million.Russia’s total fossil fuel export revenues rose 14% month-on-month to €754 million per day in October, the highest monthly level since December 2022. Export volumes remained broadly unchanged.Crude oil export revenues rose 19% to €449 million per day, with seaborne crude earnings increasing 23% to €352 million per day. CREA said this was the highest monthly level recorded since its data series began in January 2022.The report said higher global oil prices, linked to the energy crisis around the Strait of Hormuz, helped increase Russia’s fossil fuel earnings. Russia’s Urals crude averaged $101.70 a barrel in October, more than twice the EU and UK price cap of $44.10 a barrel.CREA also said that 60% of Russia’s seaborne oil was transported by sanctioned “shadow” tankers in October. Another 37% was carried by tankers owned or insured in G7 countries and their partners.A crude oil price cap of $30 a barrel, if fully enforced, would have reduced Russia’s seaborne crude oil export revenues by 21%, or €2.2 billion, in October, CREA said. A lower cap on crude and oil products together could have reduced Russia’s total seaborne oil export revenues by 25%, or €3.4 billion.