India Ramps Up Russian Oil Imports Amid Discounted Prices

India has significantly increased its crude oil imports from Russia, constituting almost 40% of the country's total oil purchases in July 2024. This shift comes as European nations reduce their purchases due to Russia's invasion of Ukraine. 'Shadow' tankers play a crucial role in this trade, circumventing Western price cap policies.

In a significant strategic shift, India has ramped up its import of Russian crude oil, with purchases in July worth USD 2.8 billion—a stark increase driven by discounted prices post Ukraine invasion.

Once accounting for less than one per cent, Russian oil now makes up almost 40 per cent of India's total oil imports. This surge comes amid a broader realignment with China and Turkey also increasing their imports due to discounted rates following Western sanctions.

India's dependence on Russian oil, facilitated by 'shadow' tankers that evade Western price cap policies, underscores the complexity and geopolitical nuances in global energy markets. Stakeholders call for stringent measures to curb the growth of these 'shadow' tankers.

(With inputs from agencies.)