A report indicates that Russia is facing challenges in its oil exports as India, a major buyer of Russian oil, is expected to reduce its purchases following suggestions from the U.S.
A recent report citing global shipping information company Kpler reveals that at least 12 tankers carrying up to 12 million barrels of Urals crude oil are currently navigating through the Indian Ocean near the coasts of Malaysia, China, and eastern Russia. This movement underscores the ongoing complexities in the global oil market, particularly for Russia, which has turned to India as a significant buyer of its crude oil following the imposition of Western sanctions after the invasion of Ukraine.
India has emerged as one of the largest purchasers of Russian oil since the 2022 invasion, prompting Russia to offer heavy discounts on Urals crude. However, reports indicate a substantial decline in imports, dropping to about 1.2 million barrels per day in January 2023 from a peak of over 2 million barrels per day in mid-2024. The ramifications of this trend are significant for Russia’s economy, as it grapples with the dual pressures of dwindling exports and increased sanctions from Western countries.
The recent announcement by U.S. President Donald Trump hints at a potential shift in India’s purchasing strategy, suggesting that India may cease importing Russian oil altogether in a deal to lower trade tariffs. Such a move would further complicate Russia’s position in the global oil market and could potentially lead to a reevaluation of its partnerships in Asia, particularly as it seeks to bolster its oil sales amidst a tightening geopolitical landscape.
