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Russia is currently India’s largest oil supplier
Russia is currently India’s largest oil supplier: According to official data, Russia continued to be India’s largest crude oil supplier in terms of value in February.
Russia is now India’s largest oil supplier.
Despite a $60 per barrel price cap in the West, Russia remained the largest supplier of crude oil to India in terms of value in February, according to official data. In February, India imported $3.35 billion in crude oil from Russia, with Saudi Arabia second at $2.30 billion and Iraq third at $2.03 billion.
Russia is now India’s top oil supplier: Important Information
India’s imports of Russian oil increased to $27 billion between April and February, making Russia the second-largest crude oil exporter to India in FY23, behind imports from Iraq, which totaled $30 billion.
Other significant exporters included Kuwait ($7.59 billion), the US ($10.05 billion), the UAE ($15.6 billion), and Saudi Arabia ($26.8 billion).
India imported crude oil worth $3.35 billion from Russia, $2.30 billion from Saudi Arabia, and $2.03 billion from Iraq in February, indicating that there was little change in the import trends despite the price cap imposed in December. Russia remained the top oil exporter.
Imports meet India’s oil needs: Deepto Roy
According to Deepto Roy, a Partner at Shardul Amarchand Mangaldas & Co, because 80% of India’s oil needs are met by imports, and a large portion of that is met by Russia, it is strategically important for India to continue purchasing Russian crude even if the price cap is exceeded.
However, whether Indian firms should buy above the price cap will be determined by a variety of factors, including the availability of alternative sources.
Furthermore, Indian entities purchasing Indian crude are not recognised or sanctioned under Indian law.
Companies could face sanctions from international banks, shareholders, or directors, according to Roy. Because the sanctions system is complex and extensive, Indian businesses should seek legal advice on how sanctions may affect them and what steps they should take.
Attempts by the G7 to reduce Russia’s oil revenue
The G7 price cap, according to BP’s top economist Spencer Dale, aims to reduce Russia’s oil revenue while maintaining a sufficient oil supply.
He noted that the price cap has outperformed expectations in achieving this objective.
In the fiscal year 2023, Russia for the first time became a significant oil supplier to India, offering oil at a discount due to the conflict in Ukraine.
India has remained steadfast, saying it will investigate all options to secure its energy needs, in spite of concerns raised by the West regarding India’s imports from Russia during the conflict.
Nirmala Sitharaman, India’s finance minister, recently said that the country could keep buying Russian oil even if the price went over the limit.
