Page 23 - RusRPTJul23

IOC purchased 23mn barrels in May, surpassing Reliance's 15mn barrels. This indicates a notable shift compared to April when Reliance and IOC purchased 16mn barrels and 14mn barrels, respectively.
Indian imports of Russian oil now account for over 46% of its total crude oil imports, indicating strong support from New Delhi and increased purchases by state-run refiners.
The discounts on Russian oil average around $10 per barrel, as confirmed by an official from a state-run refiner, local press reports. IOC's purchases in May increased by 64% compared to the previous month, representing half of its total crude imports for the month, based on ship tracking data.
Russian oil supplies to India in May exceeded the combined shipments of the next six largest shippers, including Iraq, Saudi Arabia, Mexico, UAE, Kuwait, and the US.
Ship-tracking data from Kpler reveals that US supplies dropped to 4mn barrels in May, a significant decrease compared to 16mn barrels in May 2021. The US share of the Indian oil market declined to less than 3% last month from 13% in May 2021.
In May, India's purchases from Russia averaged around 2.1mn barrels per day, with a focus on Russia’s Urals blend, a medium, sour grade similar to Gulf crude. India's total crude imports amounted to 4.5mn barrels per day. The Urals blend, which typically trades below the price cap imposed by the G7, accounted for 68% of the imports, while other grades such as Sokol, ESPO, and Varandey, which are lighter and sweeter but more expensive, usually trade above the cap.
State-run refiners in India assured that all their Russian oil imports are priced below the cap of $60 per barrel, emphasizing that the invoices provided to banks contain pricing details determined by the sellers and never exceeding the cap.
In December, the US-led G7 imposed a $60 per barrel cap on the loading price of Russian crude exports. Since then, Indian purchases from Russia have surged by 76%. This increase in imports highlights India's reliance on discounted Russian oil and the significance of the partnership between the two countries in the energy sector.
2.8 Western sanctions drive Russians to switch brands
The departure of international brands from Russia did not lead to a critical reduction in the range, as expected a year ago, but it did affect the consumer preferences of Russians, a survey showed.
Buyers began to switch more often to less known, but affordable brands. This is especially evident in the segment of perfumery, cosmetics and sportswear. In the first place for consumers is now the cost and quality of the product, not the brand.
23 RUSSIA Country Report July 2023 www.intellinews.com