Indian Oil imports Defy G7 Cap as Russian prices soar
OIL & GAS

Indian Oil imports Defy G7 Cap as Russian prices soar

In October, the average cost of Russian oil delivered to India, its primary buyer, surged to $84.20 per barrel, surpassing the $60 price limit established by the Group of Seven nations in the preceding December, as per preliminary data from the Indian government.

Despite attempts by Western nations to restrict revenue to Moscow and funding for the Ukraine conflict, India, the third-largest global oil importer and consumer, paid the highest prices for Russian oil since the imposition of the price cap. India has emerged as the foremost purchaser of Russian crude via maritime routes, particularly as Western countries scaled back purchases following Moscow's invasion of Ukraine over a year ago.

In September, India had acquired Russian oil at an average price of approximately $81.24 per barrel, as calculated by Reuters based on the latest data from the Indian Trade Ministry's website.

There are expectations of an increase in India's intake of Russian oil with the softening of prices, as stated by a government official last week. The cost of Russia's primary Ural grade in Baltic ports has fallen below the $60 per barrel ceiling since late November.

Despite international efforts to reduce reliance on Russian oil, India, seeking to minimise its crude import expenditures, finds the average cost of Russian oil more favourable than that from Iraq and Saudi Arabia, the second and third-largest oil suppliers to India. In October, barrels of oil from Iraq and Saudi Arabia averaged $85.97 and $98.77, respectively.

Aside from direct Russian supplies, Indian refiners also receive Russian oil from ports in Greece, Spain, and Korea. The majority of Indian refiners purchase Russian oil on a delivered basis, with sellers handling shipping and insurance arrangements.

While the G7-imposed ceiling permits the utilisation of Western services such as shipping and insurance, adherence to this limit remains challenging. The Indian government data does not specify additional charges like freight and insurance, but these costs significantly exceed the $60 per barrel price cap. In an effort to curb Moscow's revenue and close loopholes, the United States recently imposed sanctions on maritime companies and vessels involved in shipping Russian oil sold above the $60 price cap.

In October, the average cost of Russian oil delivered to India, its primary buyer, surged to $84.20 per barrel, surpassing the $60 price limit established by the Group of Seven nations in the preceding December, as per preliminary data from the Indian government. Despite attempts by Western nations to restrict revenue to Moscow and funding for the Ukraine conflict, India, the third-largest global oil importer and consumer, paid the highest prices for Russian oil since the imposition of the price cap. India has emerged as the foremost purchaser of Russian crude via maritime routes, particularly as Western countries scaled back purchases following Moscow's invasion of Ukraine over a year ago. In September, India had acquired Russian oil at an average price of approximately $81.24 per barrel, as calculated by Reuters based on the latest data from the Indian Trade Ministry's website. There are expectations of an increase in India's intake of Russian oil with the softening of prices, as stated by a government official last week. The cost of Russia's primary Ural grade in Baltic ports has fallen below the $60 per barrel ceiling since late November. Despite international efforts to reduce reliance on Russian oil, India, seeking to minimise its crude import expenditures, finds the average cost of Russian oil more favourable than that from Iraq and Saudi Arabia, the second and third-largest oil suppliers to India. In October, barrels of oil from Iraq and Saudi Arabia averaged $85.97 and $98.77, respectively. Aside from direct Russian supplies, Indian refiners also receive Russian oil from ports in Greece, Spain, and Korea. The majority of Indian refiners purchase Russian oil on a delivered basis, with sellers handling shipping and insurance arrangements. While the G7-imposed ceiling permits the utilisation of Western services such as shipping and insurance, adherence to this limit remains challenging. The Indian government data does not specify additional charges like freight and insurance, but these costs significantly exceed the $60 per barrel price cap. In an effort to curb Moscow's revenue and close loopholes, the United States recently imposed sanctions on maritime companies and vessels involved in shipping Russian oil sold above the $60 price cap.

Next Story
Resources

KEC International Wins New Orders worth Rs. 12.36 Billion

KEC International, a global infrastructure EPC major and an RPG Group Company, has secured new orders worth Rs. 12.36 billion (bn) across various sectors.Transmission & Distribution (T&D):KEC has secured transmission line and substation orders in the Middle East (UAE and Kuwait) and a substation order from a private TBCB player in India.Civil:A residential project order from a leading private developer in Western India strengthens KEC’s presence in the civil sector.Transportation:The company has also secured an order in the prestigious Train Collision Avoidance System (TCAS) segment ..

Next Story
Infrastructure Urban

Finance Minister to Launch NITI NCAER States Economic Forum Portal

Union Finance Minister Nirmala Sitharaman is set to launch the "NITI NCAER States Economic Forum" portal on 1st April 2025 in New Delhi. Developed collaboratively by NITI Aayog and the National Council of Applied Economic Research (NCAER), the portal will serve as a comprehensive repository of economic, social, and fiscal data spanning over 30 years (1990-91 to 2022-23). Key Features of the Portal The platform is structured into four main components: State Reports: Provides macro and fiscal overviews of 28 Indian states, featuring data on demography, economic structure, socio-economic indic..

Next Story
Infrastructure Energy

IREDA’s Loan Sanctions Surge 27% to Rs 474.53 Bn in FY 2024-25

The Indian Renewable Energy Development Agency Limited (IREDA) has reported a 27% increase in loan sanctions, reaching Rs 474.53 billion for FY 2024-25, as per provisional data. Loan disbursements also saw a 20% rise to Rs 301.68 billion, up from Rs 250.89 billion in the previous fiscal year. Additionally, the outstanding loan book expanded by 28%, standing at Rs 762.5 billion as of March 31, 2025, compared to Rs 596.98 billion in FY 2023-24. IREDA’s Commitment to Renewable Energy Growth Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, emphasized the company’s commitment to t..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?