India has cut imports of Russian oil to a three-year low

Russian crude oil flows to India in December 2024 fell to their lowest level since November 2022, reaching about 1.1 million barrels per day. The reason was tightened US sanctions against Russian energy companies, but Indian refiners are already looking for ways to resume purchases. This was reported by Bloomberg.

According to the analytical company Kpler, December's figures were the lowest in the last three years. This exceeds the forecasts of Indian government officials, who at the beginning of the month expected an even greater drop after the introduction of new US restrictions on trade in Russian energy carriers.

India's demand for Russian crude oil has decreased in recent months amid increased scrutiny from the United States on this trade. Shipments declined in July, after which they began to gradually recover – individual refineries, including state-owned Indian Oil Corporation and Bharat Petroleum Corporation, returned to purchasing barrels at reduced prices.

At the same time, Reliance, India's largest private oil refiner, suspended purchases of Russian oil after the US imposed sanctions on Rosneft and Lukoil in late October, giving importers a one-month period to wind down operations with these producers. The company has now resumed purchases, but is working with suppliers that are not under sanctions.

Russian crude oil is used at the Reliance refinery in Jamnagar, Gujarat, which produces fuel for India's domestic market, not for export.

According to Kpler, in the second week of December, total Russian oil supplies to India slowed to 712,000 barrels per day, after which they began to recover. At the same time, Indian officials predicted that the average daily import this month would be around 800,000 barrels.

Kpler data also shows reduced flows to the HPCL-Mittal Energy Ltd. oil terminal in Mundra, and that Mangalore Refinery and Petrochemicals Ltd. has not imported a single barrel this month for the first time since September 2022.

• U.S. sanctions against Lukoil and Rosneft, which took effect on November 21, they crashed the price of Russian oil Urals for India (its largest importer) and sharply increased freight rates for supertankers on key routes.
• On December 1, Indian state-owned refineries continue to buy Russian oil due to discounts.
• December 24, Reliance Industries Ltd. resumed imports of Russian crude oil at a discount after a pause caused by US sanctions against Rosneft and Lukoil.