Russia’s oil exports to India grew 22 times last year, according to Deputy Prime Minister Alexander Novak, RIA Novosti reports.
India has essentially replaced the European market for Russia. Russia supplies the same amounts of commodities to India by sea as it exported to EU countries in the past (almost 1 million barrels of oil daily). India’s oil market is currently the third largest in the world after Europe and China, the head of the analytical department of AMarkets Artem Deev explained to Invest Foresight.
Russia accounts for more than 25% of India’s oil imports, in a sharp increase from 0.2% a year ago. The expert emphasizes that Russia became India’s largest oil supplier as of the end of 2022.
“As a result, the Indian market has essentially replaced Europe for the oil traders in Russia. There is one caveat though to consider: our country is selling oil to India at a far lower rate than we used to charge Europe as the Urals oil is traded with a significant discount due to price caps. As a result, the commodity revenues in the Russian budget have dropped by half; the budget deficit is growing and has to be compensated from the National Welfare Fund,” Artem Deev notes. “Russia is selling the same amounts of oil to India (by sea) as it used to sell to Europe, but the revenues are substantially lower.”