India's Russian crude imports hit record high despite softer global oil prices: CREA

India's purchases of Russian crude oil climbed to a record high in June, underscoring the country's continued appetite for discounted supplies even as lower global oil prices weighed on Russia's export earnings, according to a report by the Centre for Research on Energy and Clean Air (CREA).

The report said India imported Russian crude worth EUR 4.5 billion during the month, a 34 per cent increase over May. Overall, India's imports from Russia reached EUR 5.5 billion, with crude oil accounting for 83 per cent of the total.

The surge came as India's overall crude oil imports increased by 5.4 per cent month-on-month, with Russian supplies making up a significant share of the additional purchases. Several major Indian refineries substantially increased their intake of Russian crude during the month.

According to CREA, imports at Reliance Industries' Jamnagar refinery rose 150 per cent from May, while Indian Oil Corporation's Paradip refinery registered a 126 per cent increase. Bharat Petroleum Corporation Ltd's Kochi refinery raised imports by 83 per cent, and Nayara Energy's Vadinar refinery increased purchases by 45 per cent.

The higher demand from India contributed to a 14 per cent rise in Russia's crude export volumes in June. However, the increase in shipments did not translate into higher earnings as softer international oil prices pushed Russia's crude export revenues down 8 per cent month-on-month to EUR 348 million per day, the report said.

Overall, Russia's fossil fuel export revenues slipped 1 per cent to EUR 734 million per day, despite a 7 per cent increase in export volumes during the month.

Besides crude oil, India imported oil products worth EUR 488 million and coal worth EUR 444 million from Russia in June, according to the report.

CREA also highlighted India's growing role in the global trade of refined petroleum products processed from Russian crude. It said refineries in India, Türkiye, Brunei and Georgia exported petroleum products worth EUR 814 million to countries that have imposed sanctions on Russia, including members of the European Union, Australia and the United States, during June.

The findings underscore India's continued reliance on Russian crude as refiners expand purchases while balancing domestic demand and export opportunities, even as lower global prices continue to pressure Russia's overall oil export revenues.

(With inputs from IANS)