Russian crude oil exports to India climbed to a new peak last month, having risen for ten consecutive months, data from commodities analytics firm Kpler showed on July 3, 2023.
Daily shipments to the South Asian country surged to 2.2 million barrels a day in June, according to Viktor Katona, head of crude analysis at Kpler.
In May, Moscow accounted for 46% of India’s total oil imports, making a sharp leap from the less than 2% mark imported prior to Western restrictions on purchases of Russian crude.
Russia-sourced oil also pushed up the share of crude India imported from Commonwealth of Independent States members, including Azerbaijan and Kazakhstan, figures show.
At the same time, Kpler warns that Indian oil imports may dip next month due to refinery infrastructure issues, which could limit its capacity to process heavy Russian crude.
Meanwhile, June deliveries from India’s traditional Middle Eastern suppliers, Saudi Arabia and Iraq, again lagged behind Moscow, as New Delhi snapped up Russian oil at hefty discounts, following a $60-per-barrel price cap imposed by Western nations.
While OPEC’s share of Indian oil imports is on the wane, Russian supplies are likely to remain high after the country’s largest oil producer, Rosneft, and India’s top refiner Indian Oil Corp signed an agreement in March to substantially increase oil supplies and diversify oil grades delivered to India.
Asia’s third biggest economy, which is also the world’s third-largest oil importer and consumer, ramped up oil purchases after Russia rerouted supplies to Asia in response to Western sanctions over the conflict in Ukraine.
Pakistan buys Russian crude oil
An oil tanker carrying Russian crude reached the port of Karachi during end of June, according to Pakistani media. It was the second shipment under a deal between Moscow and Islamabad, struck in January.
The ‘Clyde Noble’ vessel was reportedly carrying 55,000 metric tons of discounted Urals oil. It had been scheduled to arrive on June 20 but was delayed by a week due to a lack of space in Pakistan Refinery Limited’s storage tanks.
Pakistan, which imports 70% of its petroleum, received its first cargo of Russian oil on June 12, having paid for it in Chinese yuan. The transaction signaled a shift in Pakistan’s dollar-dominated export payments policy. The latest delivery follows a shipment in April, under the January deal between the two nations.
Economic cooperation between Russia and Pakistan has strengthened over the past year as Moscow seeks to diversify its trade partnerships in response to Western sanctions over the Ukraine conflict. Experts say Russian crude supplies to Pakistan could further bolster ties between the two countries, with the potential of expanding bilateral trade up to $20 billion per year.
With Russia and Pakistan focusing on strengthening bilateral trade and energy cooperation, RT talked to the Pakistani minister of petroleum, Musadik Malik, about Russian oil supply in the face of Western sanctions.
Pakistan currently imports about 70 million barrels of crude oil and its demand will be rising as the country’s population grows, according to the minister. “So, if we can have Russian crude flowing through our system, it would be very helpful”, he said.
While discussing Islamabad’s intention to import crude oil, gasoline, and diesel from Moscow at discounted rates amid Western sanctions on Russia, Malik said there were no concerns about possible repercussions.
He explained that many countries have come up with a mechanism for importing Russian oil and this has been working.
“Europe is taking energy from Russia, and if you look at the quantum of energy that Europe is taking right now from Russia and compare it with even what Pakistan in times to come may take, it’s not even going to be a small fraction,” the energy minister stressed.
He added: “We haven’t seen any sanctions, anything happening to those transactions. So, we would try to follow suit. I don’t see any problems, we’re not violating anything, we’re not doing anything completely new, which the world hasn’t done”.
In May 2023 after an official visit to Russia, Malik revealed that Moscow had agreed to provide oil to Pakistan at discounted rates to meet the country’s rising domestic and industrial energy demands.
The world’s fifth most populous country, Pakistan has been struggling with an acute energy shortage, a situation exacerbated by the surge in global oil and gas prices. Energy imports have become five to ten times more expensive for Pakistan due to increased demand in the EU.
