India’s imports of Russian crude oil have declined by 29% from their July peak, reflecting a shift in crude purchasing patterns as China increases its buying of Russian oil.
India emerged as one of the largest buyers of Russian crude following the reorientation of global energy trade after Western sanctions disrupted traditional supply routes. Russian oil offered Indian refiners an alternative source of crude, helping them diversify supplies and manage feedstock costs.
However, the latest decline indicates a moderation in India’s purchases from Russia. Refiners’ buying decisions are influenced by price competitiveness, freight and insurance costs, payment arrangements, refinery requirements and the availability of alternative crude grades.
China’s increased purchases are adding another dimension to the changing trade flows. Competition between major Asian buyers can influence the destination of Russian crude shipments, depending on pricing, commercial terms and shipping economics.
For India, changes in Russian crude imports could affect the overall sourcing mix of its refiners, particularly as the country balances energy security, affordability and supply diversification.