Indian Oil imports Defy G7 Cap as Russian prices soar
OIL & GAS

Indian Oil imports Defy G7 Cap as Russian prices soar

In October, the average cost of Russian oil delivered to India, its primary buyer, surged to $84.20 per barrel, surpassing the $60 price limit established by the Group of Seven nations in the preceding December, as per preliminary data from the Indian government.

Despite attempts by Western nations to restrict revenue to Moscow and funding for the Ukraine conflict, India, the third-largest global oil importer and consumer, paid the highest prices for Russian oil since the imposition of the price cap. India has emerged as the foremost purchaser of Russian crude via maritime routes, particularly as Western countries scaled back purchases following Moscow's invasion of Ukraine over a year ago.

In September, India had acquired Russian oil at an average price of approximately $81.24 per barrel, as calculated by Reuters based on the latest data from the Indian Trade Ministry's website.

There are expectations of an increase in India's intake of Russian oil with the softening of prices, as stated by a government official last week. The cost of Russia's primary Ural grade in Baltic ports has fallen below the $60 per barrel ceiling since late November.

Despite international efforts to reduce reliance on Russian oil, India, seeking to minimise its crude import expenditures, finds the average cost of Russian oil more favourable than that from Iraq and Saudi Arabia, the second and third-largest oil suppliers to India. In October, barrels of oil from Iraq and Saudi Arabia averaged $85.97 and $98.77, respectively.

Aside from direct Russian supplies, Indian refiners also receive Russian oil from ports in Greece, Spain, and Korea. The majority of Indian refiners purchase Russian oil on a delivered basis, with sellers handling shipping and insurance arrangements.

While the G7-imposed ceiling permits the utilisation of Western services such as shipping and insurance, adherence to this limit remains challenging. The Indian government data does not specify additional charges like freight and insurance, but these costs significantly exceed the $60 per barrel price cap. In an effort to curb Moscow's revenue and close loopholes, the United States recently imposed sanctions on maritime companies and vessels involved in shipping Russian oil sold above the $60 price cap.

In October, the average cost of Russian oil delivered to India, its primary buyer, surged to $84.20 per barrel, surpassing the $60 price limit established by the Group of Seven nations in the preceding December, as per preliminary data from the Indian government. Despite attempts by Western nations to restrict revenue to Moscow and funding for the Ukraine conflict, India, the third-largest global oil importer and consumer, paid the highest prices for Russian oil since the imposition of the price cap. India has emerged as the foremost purchaser of Russian crude via maritime routes, particularly as Western countries scaled back purchases following Moscow's invasion of Ukraine over a year ago. In September, India had acquired Russian oil at an average price of approximately $81.24 per barrel, as calculated by Reuters based on the latest data from the Indian Trade Ministry's website. There are expectations of an increase in India's intake of Russian oil with the softening of prices, as stated by a government official last week. The cost of Russia's primary Ural grade in Baltic ports has fallen below the $60 per barrel ceiling since late November. Despite international efforts to reduce reliance on Russian oil, India, seeking to minimise its crude import expenditures, finds the average cost of Russian oil more favourable than that from Iraq and Saudi Arabia, the second and third-largest oil suppliers to India. In October, barrels of oil from Iraq and Saudi Arabia averaged $85.97 and $98.77, respectively. Aside from direct Russian supplies, Indian refiners also receive Russian oil from ports in Greece, Spain, and Korea. The majority of Indian refiners purchase Russian oil on a delivered basis, with sellers handling shipping and insurance arrangements. While the G7-imposed ceiling permits the utilisation of Western services such as shipping and insurance, adherence to this limit remains challenging. The Indian government data does not specify additional charges like freight and insurance, but these costs significantly exceed the $60 per barrel price cap. In an effort to curb Moscow's revenue and close loopholes, the United States recently imposed sanctions on maritime companies and vessels involved in shipping Russian oil sold above the $60 price cap.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?