India's Russian Oil Imports Drop by 55% in November

According to a recent report by the Centre for Research on Energy and Clean Air (CREA), India's imports of Russian crude oil experienced a significant 55% drop in November, marking the lowest level since June 2022. Despite this decline, Russia continues to be the largest supplier of oil to India.

Since Russia's invasion of Ukraine in February 2022, India has emerged as the second-largest buyer of Russian crude, with its purchases skyrocketing from less than 1% to nearly 40% of the country's total oil imports. However, November saw an 11% month-on-month decline in India's total crude oil imports, with Russian crude witnessing the steepest drop of 55%.

India heavily relies on imports for over 85% of its crude oil, which is subsequently refined into fuels such as petrol and diesel. China accounted for 47% of Russia's crude oil exports, while India purchased 37%, followed by the European Union and Turkey, each importing 6%. The report did not provide exact figures for these exports.

In December 2022, the Group of Seven (G7) nations, the European Union, and Australia imposed an embargo on Russian crude and set a $60 per barrel price cap to limit funding for Russia's war efforts. This move significantly impacted Russia's revenues, prompting the country to seek new markets and alternative methods of transporting its oil. In response, Russia began offering steep discounts on its Urals-grade crude to adapt to the new market conditions.