Europe has been largely dependent on crude oil imports from India since Russia invaded Ukraine and imposed sanctions on Moscow’s oil economy. The Kepler report also suggests that Europe’s dependence on Indian imports could increase by more than 360,000 barrels per day.
Updated May 1, 2023 | 04:56 PM IST
Russia’s crude oil exports to India alone are expected to cross two million barrels per day in April.
Photo: ANI
European dependence on India
Europe has been largely dependent on crude oil imports from India since Russia invaded Ukraine and imposed sanctions on Moscow’s oil economy.
The Kpler report also suggests that Europe’s dependence on Indian imports could rise to over 360,000 barrels per day, slightly more than Saudi Arabia, an ANI report said.
However, this latest development could cost Europe more by cutting off direct supplies from Russia. This will result in increased demand for Russian crude and higher freight charges for Europe.
Also, this poses additional challenges for domestic refiners in Europe who are unable to access cheap oil supplies from Russia.
Benefit India
With the prospect of a long-term ceasefire in the Ukraine-Russia war, sanctions on Russia’s oil industry are likely to continue. However, Russia is expected to continue exporting crude oil directly and indirectly to India and other countries.
Russia’s crude oil exports to India alone are expected to cross two million barrels per day in April. This is 44% of India’s total crude oil imports from Russia.
India resists Western pressure.
In the year By 2022-23, Russia will become the largest exporter of crude oil to India. This happened after Russia started supplying oil to India at discounted prices. Despite pressure from the US and Western countries, India refused to accept their warnings except for Russian oil.
According to data from the Union Ministry of Commerce and Industry, Russia was the leading exporter of crude oil to New Delhi in February despite prices in the West at $60 per barrel.
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