(MENAFN) Amidst escalating tensions and Western sanctions imposed on Moscow in response to the Ukraine conflict, India's reliance on Russian oil has remained steadfast, with trade data from New Delhi's Commerce Ministry revealing a notable increase in crude imports from Russia in 2024.
According to the latest figures, India's crude oil imports in January amounted to USD4.48 billion, marking a significant 14 percent month-on-month surge and a staggering 41 percent rise compared to the same period last year. Notably, Russian deliveries once again outpaced those from India's traditional Middle Eastern suppliers, showcasing the resilience of India's burgeoning partnership with Moscow in the energy sector.
Despite geopolitical uncertainties and market disruptions, Russia has solidified its position as India's top crude oil supplier, a title previously held by Middle Eastern giants such as Saudi Arabia and Iraq. While Iraq's deliveries remained stable at USD2.54 billion, Saudi Arabia witnessed a notable decline in shipments, plunging by 31 percent to USD1.55 billion. Similarly, oil imports from the United Arab Emirates stood at USD980 billion, further underscoring Russia's dominance in India's energy landscape.
India's strategic pivot towards Russian oil imports gained momentum as Moscow redirected its supplies to Asia in response to Western sanctions, offering lucrative discounts to Indian buyers.
This strategic realignment culminated in Russia emerging as India's largest crude supplier in 2023, accounting for over 30 percent of its total imports. Despite gradual reductions in discounts, India's demand for Russian crude has remained robust, buoyed by competitive pricing and reliable supply channels.
However, the resilience of India's oil imports from Russia has not been without challenges.
Recent United States sanctions targeting ship-owners carrying Russian oil above specified price caps have caused payment disruptions and a slight decline in crude sales towards the end of last year. Nevertheless, India's commitment to diversifying its energy sources and maintaining strong ties with Russia underscores the strategic importance of the bilateral relationship amidst shifting geopolitical dynamics and global uncertainties.
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