Russian crude exports to India have increased since the beginning of March 2022 because of sanctions.
The average daily volume of Russian oil purchases in India is 360,000 bpd. This volume is four times the daily volume purchased last year.
According to Alex Booth, head of research at Kpler, oil from Russia, which is now unable to find buyers in Europe, is being bought up by India.
Russia has not traditionally been a major oil supplier to India, but the situation has changed because of sanctions. Thanks to the sanctions, Russian oil now trades at a steep discount of $25-30 per barrel. This makes it economically advantageous for India, despite the usually high transportation costs.
Against this background, oil prices continue to rise and are currently trading well above $100 mark.
India imports more than 80% of its crude oil consumption and is seeking to diversify its sources, including through increased consumption of Russian oil.
Western sanctions have halted Russia's trade in US dollars. However, New Delhi and Moscow are reportedly discussing a payment mechanism in their own currencies.
The United States remained dissatisfied with India's neutral stance. The statement of dissatisfaction came from White House press secretary Jen Psaki, who last week commented on India's plans. She accused India of acting wrongly on Russia's position, supporting Russia's leadership, and not agreeing with the sanctions that other countries have imposed. She also warned India to think about which side it wants to stay on at the moment.
