Tue Feb 25 07:09:38 UTC 2025: ## India’s Reliance on Discounted Russian Oil Fuels Global Energy Market Shifts
**New Delhi, February 25, 2025** – India’s significant increase in Russian crude oil imports since the start of the Ukraine conflict has reshaped global energy markets, according to a new report by the Centre for Research on Energy and Clean Air (CREA). In the third year of the war, India purchased €49 billion worth of Russian oil, becoming one of Moscow’s top three clients alongside China (€78 billion) and Turkey (€34 billion). This represents a dramatic shift from less than 1% of India’s total oil imports before the invasion to a staggering 40% in a short period.
The surge in Indian imports is directly linked to significant discounts offered by Russia due to Western sanctions. This discounted oil, which has recently narrowed to less than $3 per barrel, allowed India to secure energy supplies at a much cheaper rate. The report highlights that this reliance on Russian crude has had far-reaching consequences.
Indian refineries processed this oil into products like petrol and diesel, a portion of which was exported to European Union (EU) and G7 countries. In the third year of the invasion, G7+ countries imported €18 billion worth of oil products from Indian and Turkish refineries, with an estimated €9 billion originating from Russian crude. This figure increased by approximately 10% in the first three quarters of 2024. The EU was the largest importer of these refined products, with the Netherlands, France, Romania, Spain, and Italy among the top recipients. Australia was the single largest importer, with purchases totaling €3.38 billion.
The report also analyzed the impact of the price cap imposed on Russian oil. While 65% of tankers arriving at India’s Sikka port were subject to the cap, the analysis suggests that applying the price cap to the cost, insurance, and freight (CIF) price would have reduced Russia’s crude export revenues by 34%, or roughly €5.8 billion in 2024. The report concludes that India’s energy decisions have profoundly affected the global oil landscape, underscoring the complex geopolitical ramifications of the conflict in Ukraine.
First Piper 