NEW DELHI: India overtook China as the world’s biggest importer of Russian oil in July as Chinese refiners bought less because of lower profit margins from producing fuels, a comparison of import data showed.

Russian crude made up a record 44 per cent of India’s overall imports last month, rising to a record 2.07 million barrels per day (mbpd), 4.2pc higher than in June and 12pc more than a year ago, data on Indian shipments from trade and industry sources showed.

That surpassed China’s July oil imports from Russia of 1.76mbpd via pipelines and shipments, based on Chinese customs data.

Indian refiners have been gorging on Russian oil sold at discounts after Western nations imposed sanctions against Moscow and curtailed their energy purchases in response to Russia’s invasion of Ukraine.

“India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions,” an Indian refining source said.

India’s trade with Russia has increased since Russia began its war against Ukraine in February 2022 mainly because of oil and fertiliser imports, a move helping to keep a lid on global prices and controlling inflation.

Published in Dawn, August 23rd, 2024