India has emerged as the second-largest global purchaser of Russian crude oil following the onset of the Ukraine conflict, with imports valued at approximately 144 billion euros, according to a recent analysis. The findings from the European think tank Centre for Research on Energy and Clean Air (CREA) highlight the significant shift in global energy trade flows since Russia's full-scale invasion began on February 24, 2022.
Trillion-Euro Windfall for Russia from Fossil Fuels
The CREA report, cited by news agency PTI, reveals a staggering figure: Russia has earned close to 1 trillion euros from worldwide fossil fuel sales since the war started. These substantial revenues are noted to be continuously financing Moscow's military operations in Ukraine. The think tank's estimates extend up to January 2026, underscoring the prolonged financial benefit derived from energy exports.
China leads the list of buyers, having acquired Russian fossil fuels worth 293.7 billion euros. This sum includes 210.3 billion euros in oil purchases, supplemented by coal and gas. India secured the second position, with total fossil fuel imports from Russia reaching 162.5 billion euros. This amount is comprised of 143.88 billion euros for crude oil and an additional 18.18 billion euros for coal.
EU Imports and India's Strategic Shift
Despite imposing sanctions, the European Union collectively spent 218.1 billion euros on Russian oil, coal, and gas during the same period. CREA pointed out that Russian oil continues to enter the EU, primarily through Hungary and Slovakia. Furthermore, refined products originating from Russian crude still find their way into countries that have officially sanctioned Moscow.
India, ranking as the world's third-largest oil importer, capitalized on the situation by significantly increasing its intake of discounted Russian crude after Western nations reduced their imports. As reported by PTI, Russia's portion of India's crude import basket witnessed a dramatic surge—from less than 1% before the war to nearly 40% at its peak.
Recent Declines and Future Projections
This trend, however, is showing signs of change. Russia's share in India's imports has now fallen to below 25%, a decline attributed to fresh US sanctions targeting major Russian oil exporters. Data from CREA indicates a sharp drop in India's daily purchases from non-sanctioned entities, falling to around 72.92 million euros in early January 2024 from a high of 189.07 million euros in July 2023.
The changing landscape is further emphasized by the stance of Reliance Industries, previously India's top buyer of Russian crude. The company has stated it does not anticipate receiving any shipments of Russian oil in January 2024. This development, combined with tighter Western sanctions and trade pressures, could potentially push India's imports of Russian crude to a multi-year low in the near future.
