India to boost Russian oil imports in September despite US pressure - Reuters
Photo: India will buy more Russian oil (Getty Images)
Exports of Russian oil to India are expected to increase in September. Russia lowered prices to sell more raw materials, since the work of a number of refineries was disrupted due to Ukrainian drone strikes, according to Reuters.
US pressure and India’s response
India became the largest buyer of Russian oil, displaced by Western sanctions after Moscow’s invasion of Ukraine in 2022. This allowed Indian refiners to receive cheaper raw materials.
However, purchases caused condemnation from the administration of US President Donald Trump. On Wednesday, Washington raised tariffs on Indian imports to 50%.
New Delhi declares that it hopes to settle the issue through negotiations. Prime Minister Narendra Modi also went on a diplomatic tour, which included a meeting with Vladimir Putin.
Financing the war against Ukraine
American officials accuse India of profiting from cheap Russian oil and financing the war against Ukraine.
Without India, it would be difficult for Russia to maintain current export volumes. This would hit the Kremlin’s revenues from oil sales, which finance the Russian budget and the war against Ukraine.
Three sources familiar with supplies to India reported that Indian refiners are expected to increase their purchases of Russian oil in September by 10–20% compared to August — that is, by 150,000–300,000 barrels per day. According to them, the data are preliminary, and the sources are not authorized to speak publicly.
Role of the largest buyers and strikes on refineries
The largest importers of Russian oil in India — Reliance and Nayara Energy, whose controlling stake belongs to Russian companies — did not comment on the situation.
In Russia, export volumes have increased since planned and unplanned refinery shutdowns reduced the country's ability to process oil. Ukraine, in recent days, attacked 10 Russian plants, which disabled up to 17% of capacities.
Russia’s share in India’s imports
For the first 20 days of August, India imported 1.5 million barrels of Russian oil per day. This corresponds to the level of July and is slightly below the average indicator of 1.6 million barrels per day in January–June, according to Vortexa analysts.
These volumes equal approximately 1.5% of the global supply. Russia accounts for approximately 40% of India’s oil needs, making it the largest buyer of Russian seaborne oil. Large clients also remain China and Turkey.
Discounts on Russian oil
The increase in purchases by India occurred at the expense of more expensive supplies from OPEC countries. OPEC’s share rose slightly in 2024 after an eight-year decline.
According to traders, Russian exporters offered Urals oil with September loading at a discount of 2–3 dollars per barrel to benchmark Brent. In August the discount amounted to only 1.50 dollars per barrel — the minimum level since 2022.
White House trade adviser Peter Navarro stated that India has turned into a hub for processing cheap Russian oil. Companies buy oil at a significant discount, process it, and export fuel to Europe, Africa, and Asia. Revenues go to politically connected energy oligarchs and further into Putin’s military budget.
At the same time, 62% of Americans support imposing sanctions against Russia’s trading partners — India, China, and other countries.
