India Imports Russian Crude Oil Amid International Sanctions Pressure

[Asia Economy Reporter Jeon Jinyoung] Despite Western sanctions and pressure on Russia, it has been confirmed that India has officially started importing Russian crude oil.

Local Indian media reported on the 18th (local time) that the state-owned Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) recently signed contracts to import 3 million barrels and 2 million barrels of Russian crude oil, respectively.

IOC purchased 3 million barrels of Russian Ural crude oil last week from the energy trading company Vitol, with the price reportedly $20 to $25 cheaper per barrel than Brent crude. HPCL bought 2 million barrels of Ural crude oil for May delivery this week.

Another state-owned company, Mangalore Refinery and Petrochemicals Limited (MRPL), is also planning to import 1 million barrels of Russian crude oil. Local media forecast that India's imports of Russian crude oil are expected to expand further.

Russia is the world's second-largest crude oil exporter but is facing difficulties in sales due to Western sanctions over the Ukraine invasion. In response, Russia is offering crude oil at discounted prices to various countries.

India is the world's third-largest crude oil importer, relying on overseas sources for 80% of its needs. With crude oil prices soaring due to the Ukraine invasion, India has taken Russia's offer as an opportunity. Normally, India imports only about 2-3% of its crude oil from Russia. It is also reported that India has explored trading in rupees and rubles instead of US dollars to circumvent sanctions.

Earlier, India abstained from voting on the UN General Assembly resolution condemning Russia's invasion of Ukraine. India has not joined the sanctions against Russia. The dominant analysis is that this is due to the decades-long relationship based on military and other issues.

Russia has held the most important position in Indian defense, accounting for 49% of India's arms imports from 2016 to last year.

If relations with Russia deteriorate, it would inevitably be a burden for India, which needs to import Russian weapons to counter China and Pakistan.

This content was produced with the assistance of AI translation services.