India's Russian Oil Imports Hit Nine-Month High
OIL & GAS

India's Russian Oil Imports Hit Nine-Month High

In April 2024, India's oil imports from Russia surged to a nine-month high of 1.96 million barrels per day (bpd), marking a significant 19% increase from March. This uptick highlights India's growing dependence on discounted Russian crude, which now constitutes 40.3% of India's total crude imports for the month. This is the first time in seven months that Russia's share has exceeded 40%, rebounding from a low of 33% in recent months.

India's increased imports from Russia come amidst geopolitical shifts and sanctions impacting traditional oil suppliers. Following the re-imposition of U.S. sanctions on Venezuelan oil, India has turned more heavily towards Russian crude. This strategic move has resulted in substantial financial savings, with India reportedly saving $7.9 billion on oil imports in the 2023-24 financial year by purchasing cheaper Russian oil.

Analysts attribute part of the increase to disruptions in Russian refining capacity due to Ukrainian drone strikes, which have prompted Russia to offload surplus crude oil. Despite these disruptions, Russia has maintained its export levels by offering attractive discounts, which have been pivotal in India becoming Russia's largest oil importer, surpassing China.

This reliance on Russian oil aligns with India's broader energy strategy, which aims to secure affordable energy sources to sustain its economic growth. The Indian government?s fiscal management and inflation control efforts benefit from these lower oil import costs, reinforcing the strategic importance of these energy imports in India?s economic planning.

In April 2024, India's oil imports from Russia surged to a nine-month high of 1.96 million barrels per day (bpd), marking a significant 19% increase from March. This uptick highlights India's growing dependence on discounted Russian crude, which now constitutes 40.3% of India's total crude imports for the month. This is the first time in seven months that Russia's share has exceeded 40%, rebounding from a low of 33% in recent months. India's increased imports from Russia come amidst geopolitical shifts and sanctions impacting traditional oil suppliers. Following the re-imposition of U.S. sanctions on Venezuelan oil, India has turned more heavily towards Russian crude. This strategic move has resulted in substantial financial savings, with India reportedly saving $7.9 billion on oil imports in the 2023-24 financial year by purchasing cheaper Russian oil. Analysts attribute part of the increase to disruptions in Russian refining capacity due to Ukrainian drone strikes, which have prompted Russia to offload surplus crude oil. Despite these disruptions, Russia has maintained its export levels by offering attractive discounts, which have been pivotal in India becoming Russia's largest oil importer, surpassing China. This reliance on Russian oil aligns with India's broader energy strategy, which aims to secure affordable energy sources to sustain its economic growth. The Indian government?s fiscal management and inflation control efforts benefit from these lower oil import costs, reinforcing the strategic importance of these energy imports in India?s economic planning.

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?