Europe buying Russian oil via India at record rates in 2023 despite Ukraine war, per the Independent.
Indian refiners are likely selling record quantities of Russian crude to Europe, according to a recent analysis. In recent years, India has emerged as one of Russia's major oil customers, with an average daily purchase of 1.75 million barrels of crude in 2023—an increase of 140% compared to 2022. This surge in Indian demand for discounted Russian crude began in the months following the invasion of Ukraine. Simultaneously, the European Union has become one of India's significant customers for refined oil, purchasing approximately 231,800 barrels per day in 2023—a 115% increase from the previous year.
Kpler data, as analyzed by The Independent, reveals that this is the highest volume of refined oil Europe has procured from India in the last seven years. The analysis suggests that much of this refined oil is likely of Russian origin, despite Western nations implementing a $60 price cap on Russian oil and imposing bans on its purchase in an effort to restrict Moscow's war revenue. Industry experts speculate that Russia has found ways to circumvent these restrictions, including the creation of a secretive fleet of oil ships, increasing shipping costs, and engaging in oil swaps with intermediaries like India.
Despite pressure to maintain good relations with the U.S., India has remained strategically neutral in Russia's conflict with Ukraine, continuing to buy Russian oil while selling refined oil products to the West. Kpler data analyzed by Bloomberg indicates that significant quantities of Indian fuel, likely of Russian origin, were shipped to New York last year. However, India's purchases of Russian oil have decreased in recent months, partly due to the desire to preserve ties with the U.S. and reported payment issues with Russian oil suppliers. Ship-tracking data analyzed by Reuters shows a substantial decline in Russian oil shipments to India, reaching an 11-month low in December.
