In November, India poured another 2.6 billion euros into Russian crude, a modest rise that arrived even as Washington tightened its grip on Moscow's oil revenues. The shift is quietly remaking old trade routes: a country that once leaned on Middle Eastern barrels now finds itself a central hub for discounted Russian oil, refined into fuel that flows onward to distant markets. What the numbers reveal is less a clean story of compliance or defiance than a divided response, where state refiners press ahead while private giants step back, and where the gap between nations' sanctions determines whe
India's Russian Crude Imports Hit Five-Month High as Refined Fuel Exports to Australia Surge
In November, India poured another 2.6 billion euros into Russian crude, a modest rise that arrived even as Washington tightened its grip on Moscow's oil revenues. The shift is quietly remaking old trade routes: a country that once leaned on Middle Eastern barrels now finds itself a central hub for discounted Russian oil, refined into fuel that flows onward to distant markets. What the numbers reveal is less a clean story of compliance or defiance than a divided response, where state refiners press ahead while private giants step back, and where the gap between nations' sanctions determines where the refined product ultimately lands.
India spent 2.6 billion euros on Russian crude in November, up four per cent from October and the highest monthly figure in five months. The finding, from the Centre for Research on Energy and Clean Air, comes weeks after Washington sanctioned Rosneft and Lukoil on October 22, aiming to cut the revenue that funds Russia's war in Ukraine.
The response in India has split. Reliance, Hindustan Petroleum, HPCL-Mittal Energy and Mangalore Refinery paused purchases for now, while Indian Oil kept buying from Russian entities not under sanction. State-owned refiners raised Russian volumes by 22 per cent over October, even as private imports dipped only slightly.
That dependence is a recent development. After Western countries turned away from Moscow following the February 2022 invasion, and European demand fell, Russian barrels arrived at steep discounts. Russia's share of India's crude imports rose from under 1 per cent to nearly 40 per cent, and India became the largest buyer of that discounted oil.
Much of the refined fuel is now leaving the country. Of 807 million euros in products from six refineries in India and Turkiye, CREA estimates 301 million was made from Russian crude. Exports to sanctioning countries fell eight per cent, but shipments to Australia jumped 69 per cent, all from Reliance's Jamnagar refinery. Reliance has said it will stop using Russian oil for fuel destined for export, while the European Union has banned such fuel and Australia, Canada and the United States have not. December's data will show whether the purchases keep climbing and whether those governments close the gap.
India spent 2.6 billion euros on Russian crude oil in November, a four per cent rise over October's 2.5 billion and the highest monthly figure in five months. The finding comes from the Centre for Research on Energy and Clean Air (CREA), a European think tank, and it arrives weeks after Washington moved to choke off the money that funds Russia's war in Ukraine.
The context is the sanctions the United States imposed on October 22 against Rosneft and Lukoil, two of Russia's largest oil producers. Several Indian refiners responded by stopping purchases for now: Reliance Industries, Hindustan Petroleum Corporation Ltd, HPCL-Mittal Energy Ltd and Mangalore Refinery and Petrochemicals Ltd. Others kept buying. Indian Oil Corporation continues to purchase from Russian entities that are not sanctioned.
That split shows up in the numbers. CREA says private refiners' imports dipped only marginally in November, while state-owned refineries raised their Russian crude volumes by 22 per cent over October. Overall import volumes stayed stable. CREA also expects the climb may continue: cargoes loaded before the sanctions took effect are still being delivered through December, so India's purchases could rise again.
India remained the second-largest buyer of Russian fossil fuels in November, behind China. China took 47 per cent of Russia's crude exports that month, India 38 per cent, and Turkiye and the European Union 6 per cent each. Russia supplied about 35 per cent of all the crude India imported in November.
That dependence is recent. India, the world's third-largest oil importer, traditionally leaned on Middle Eastern supply. After Western countries shunned Moscow following its February 2022 invasion of Ukraine, and European demand fell, Russian barrels became available at steep discounts. Russia's share of India's crude imports went from under 1 per cent to nearly 40 per cent, making India the biggest buyer of discounted Russian crude.
The crude is refined into fuels such as petrol and diesel, some used at home and some exported. CREA tracked exports from six refineries in India and Turkiye in November. They shipped 807 million euros of refined products that were partly made from Russian crude: 465 million to the EU, 110 million to the United States, 51 million to the United Kingdom, 150 million to Australia and 31 million to Canada. CREA estimated that 301 million euros of that total was actually refined from Russian crude. A further 297 million euros of products from these refineries had no specified destination.
Exports to the countries imposing sanctions fell 8 per cent from October. Australia went the other way: shipments there rose 69 per cent to 150 million euros, and CREA says every one of those cargoes came from the Jamnagar refinery in Gujarat, the giant complex run by Reliance. Canada, meanwhile, received a cargo from a refinery using Russian crude for the first time in eight months.
The policy gap is plain. The European Union has banned imports of fuel made from Russian oil. Australia, Canada and the United States have not yet announced such a ban. Reliance, which used to export fuel to Europe, has announced it will stop using Russian oil to make fuel for export. What to watch next is December's import data and whether Australia, Canada or the United States close that gap.
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