Russia accelerates crude oil sales to India

Lots Russian crude oil sold to India surpassed 396,000 tonnes in March, according to Commerce Department data. That’s an increase of more than 15% month-over-month and a 40% increase on a year-over-year basis.

Collectively, India has imported 56.7 million tonnes of Russian oil since the start of this year, 12% more than a year earlier, RT noted.

According to Refinitiv Eikon data, shipments of Russian Urals crude oil to India have increased since Russia began its special military operation in India. Ukraine.

Western sanctions against Moscow have opened the door for Indian refiners to increase purchases of Russian oil at favorable prices as many European buyers avoid Russian crude.

The world’s third-largest oil importer is buying Russian crude at less than $70 a barrel to offset additional setbacks due to sanctions.

Amount of oil purchases from Russia of India will increase further to around 487,500 tonnes this May, according to preliminary data from Refinitiv.

In mid-May, India’s Economic Times reported that India’s largest oil and gas exploration and production company ONGC is considering buying more shares in Russian oil and gas fields from Western companies planning to invest in Russian oil and gas. plan to leave the country.

The move comes even as the Indian company’s first bid for Shell’s 50% stake in the Salym oil fields in Siberia has yet to be accepted, the sources said.

“The hostilities will not last forever and neither will sanctions. We must work to secure our energy supplies. We understand the risks and we are willing to take them” – one source said.

ONGC is considering bidding for ExxonMobil’s 30% stake in Russia’s Sakhalin 1 project and Shell’s 27.5% interest in Sakhalin 2 project. India’s largest oil company already owns 20% of the shares. by Sakhalin 1.

The sources revealed that, along with other Indian companies, ONGC has also held preliminary discussions about the potential acquisition of BP’s 20% stake in Russia’s Rosneft.

Major Western oil and gas companies such as BP, Shell and ExxonMobil have recently announced their intention to withdraw from operations. oil and gas in Russia due to Western sanctions.

Meanwhile, India continues to buy Russian oil while seeking shares in Russian assets at favorable prices due to the risks involved.