After the Russian invasion of Ukraine, India became the second largest buyer of oil, supporting the Russian economy.
Russia loses customers: India stops buying Russian oil / REUTERS illustration
Indian oil refineries intend to stop buying Russian oil from ESPO this month. This is happening against the backdrop of the announcement in the mobilization country, which, according to OPU estimates, will annually require 1.3 trillion rubles from the budget and plans of the Russian Federation double defense spending.
According to Reuters India refuses to buy due to high transport rates.
Sources in the publication note that in the past six months, India, which previously rarely bought Russian oil, has become the second largest customer after China. After some Western companies stopped buying, oil refineries in India bought almost all types of Russian oil, taking advantage of the discounts. Now the price of Russian oil has risen.
“On a net basis, after taking freight into account, the cost of ESPO is $ 5- $ 7 per barrel more than similar grades from other countries such as Murban in the UAE,” a source said. Indian industry.
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Refinitiv analyst Ehsan Ul Haq noted that Middle Eastern producers cut official prices for their deliveries in October, which also hit the attractiveness of Russian oil.
Indian companies are already buying more and more other types of oil from West Africa. Therefore, this month India loaded 2.35 million tons of African oil (in August – 1.16 million tons), and Russian oil – about 2 million tons (in August – 3.55 million tons) .
India’s stance on the war in Ukraine: what you need to know
However, while making recommendations to the Kiev Security Treaty on September 13, the President’s Office did not mention India among the members of the central nucleus of allied countries and potential guarantors.
