Page 10 - AsianOil Week 17 2022

AsianOil SOUTH ASIA AsianOil

India’s crude oil imports soar

since start of Ukraine war

PERFORMANCE DATA released by India’s Petroleum Planning the cheaper prices. As India imports 85% of its
and Analysis Cell shows that crude oil imports oil requirements, the Russian discounts make it
have soared between April 2021 and March 2022 difficult for Indian refiners to refuse despite the
compared with the same period of 2020-21. The risk of incurring the wrath of Western countries
agency reported that during the 2021-22 period, and organisations. Russian oil sales
India imported 212.2mn tonnes of crude at a Indian purchases of Russian coal have also
cost of $119.2bn, while data for the 2020-21 year risen significantly over the last month. Recent to India during
show that imports totalled 196.5mn tonnes at a shortages of coal in India have caused blackouts
cost of $62.2bn. in some regions. the last two
A report in the Indian media said the coun-
Indian refiners have bought roughly 40mn
try, which is the world’s third-largest crude barrels of Russian crude since the start of the months had more
importer, had spent $13.7bn on oil imports in war, Reuters reported this week. The news ser- than doubled over
March alone, signifying that New Delhi is tak- vice added that Russian oil sales to India during
ing advantage of heavily discounted prices for the last two months had more than doubled over purchases made
Russian crude. Since its armed forces invaded purchases made in 2021. Indian officials argue
Ukraine on February 24, Moscow has found that that they are buying the cheap oil to offset infla- in 2021.
its oil is being voluntarily boycotted by most of tion and that their Russian imports amount to
the world’s major crude traders, leading it to offer only a small proportion of the country’s total
oil at deep discounts. Traders fear running foul supply.
of the international financial sanctions that have Numerous cargoes of Russian crude are
been put in place against Russia by the US and being loaded and shipped to the global market
the European Union. under a “destination unknown” export label,
The US has urged India not to purchase crude according to Reuters. It may become harder
from Russia in order to boost international pres- for Russia to continue this practice as sanctions
sure on Moscow to end its war against Ukraine. begin to take their full effect this summer, with
India, however, is reported to be purchasing all complications arising with regard to insurance
grades of Russian crude as it takes advantage of and logistics.™

P10 www. NEWSBASE .com Week 17 29•April•2022