India has overtaken China as the world’s largest importer of Russian oil, according to data from July. Russian crude accounted for a record 44% of India’s total oil imports, reaching 2.07 million barrels per day (bpd). This marks a 4.2% increase from June and a 12% rise from the previous year.
In contrast, China’s imports of Russian oil fell to 1.76 million bpd, as Chinese refiners reduced purchases due to lower profit margins from fuel production.
Indian refiners have been capitalizing on discounted Russian oil following Western sanctions imposed in response to Russia’s invasion of Ukraine. “India’s requirement for Russian oil is expected to rise unless there are further sanctions,” an Indian refining source noted.
Since Russia’s war against Ukraine began in February 2022, India’s trade with Russia, particularly in oil and fertilizers, has increased, helping to stabilize global prices and control inflation. India’s purchases have redirected Russian ESPO Blend crude from traditional Chinese markets to South Asia, with July imports of ESPO Blend reaching 188,000 bpd.
Refiners in northeast China, previously major ESPO buyers, have reduced demand due to weak fuel consumption. Iraq remains India’s second-largest oil supplier, followed by Saudi Arabia and the United Arab Emirates. India’s overall crude imports from the Middle East rose to 40% in July from 38% in June.
