India increases imports of Russian oil by 10 times, plans to reach 30% - Indian Oil chief

Reuters reported this with reference to the statement of Vinod Kumar, Executive Director of Indian Oil, an Indian oil and gas company.

For example, in 2021-2022, the share of Russian crude oil imports was less than 2%. However, it has now increased 10-fold to about 20% of India's crude oil imports.

“In Indian Oil's case the jump in Russian imports is more profound: from 0.1% in 21/22 to 21.5% in 22/23. And I'm expecting that for the current year, that is 23/24, the numbers will be available (at) 30%” Vinod Kumar said. 

Russia is reportedly redirecting its energy from Western countries that have imposed restrictions and sanctions on trade with Moscow, including oil price caps, following Russia's invasion of Ukraine. Currently, China and India buy most of the diverted Russian energy.

Situation with Russian oil

On December 5, 2022, the decision to embargo Russian oil supplies to the European Union officially came into force. Now, Russian oil can only be purchased at a price not exceeding USD 60 per barrel.

In March 2023, Russia pledged to cut oil production by 500,000 barrels per day. However, in May, Russian crude oil flows to international markets still showed no signs of the production cuts announced by Russia.

And Reuters reported that India's oil imports from Russia rose to a new record high in April. This further reduced the share of African oil. In contrast, Spiegel noted that Russian oil continues to flow to the European Union, despite the embargo, as oil products from third countries, especially India.

Subsequently, The Wall Street Journal, citing sources, wrote that Saudi Arabia is dissatisfied with Russia's actions in the field of oil production, believing that Moscow does not adhere to its commitments under OPEC to reduce oil production. Riyadh believes that Russia continues to supply more crude oil to the world market than agreed upon, and this leads to stagnation of oil prices, while Saudi Arabia would like to see them rise.

In May, Russia's oil revenues fell by 36%. The country's oil exports fell by 260,000 barrels per day to 7.8 million barrels per day. 

In early June, it became known that Russia would cut oil production in 2024. This follows from decisions made at a meeting of representatives of the OPEC countries. Thus, Russia's oil production quota will be reduced by 650,000 barrels per day.