RoydadNaft –  India ramped up its purchases of Russian crude oil by 4% in November, reaching a five-month high of €2.6 billion and underscoring New Delhi’s strategic pivot toward discounted Moscow-sourced energy amid escalating Western sanctions.

According to the Centre for Research on Energy and Clean Air (CREA), a European think tank, China dominated Russia’s crude exports last month with a 47% share, followed by India at 38%, Turkey at 6%, and the European Union at 6%. India’s overall crude import volumes held steady, but its Russian buys marked the highest level since June. CREA forecasts potential further gains in December as pre-sanction shipments arrive.

The uptick follows U.S. sanctions imposed on October 22 targeting Rosneft and Lukoil—Russia’s top oil producers—to starve funding for the Ukraine war. These measures have frozen imports by major Indian private players, including Reliance Industries, Hindustan Petroleum Corp. Ltd. (HPCL), HPCL-Mittal Energy Ltd., and Mangalore Refinery and Petrochemicals Ltd. However, state-owned Indian Oil Corp. (IOC) has continued sourcing from unsanctioned Russian suppliers.

CREA data shows state refiners boosted Russian volumes by 22% month-over-month in November, offsetting a slight dip among private firms. As the globe’s third-largest oil importer, India swiftly embraced Russian crude after the West’s boycott following Moscow’s February 2022 invasion of Ukraine. Russia’s slice of India’s imports ballooned from under 1% pre-war to nearly 40% at its peak; in November, it supplied about 35% of the country’s total crude needs.

These barrels are refined into petrol, diesel, and other fuels for domestic consumption and lucrative exports. Last month, six refineries in India and Turkey shipped €807 million in refined products—partly derived from Russian crude—to key destinations: the EU (€465 million), the U.S. (€110 million), Australia (€150 million), the UK (€51 million), and Canada (€31 million). CREA estimates €301 million of these exports were directly tied to Russian feedstock, with another €297 million’s end-markets unspecified.

Shipments to sanctioning countries fell 8% from October, but non-sanctioning outlets filled the gap. Exports to Australia soared 69% to €150 million—all loaded at Reliance’s sprawling Jamnagar complex in Gujarat. Canada, after an eight-month hiatus, received its first such Russian-crude-derived cargo. The EU has banned these fuels outright, but nations like Australia, Canada, and the U.S. have yet to impose similar curbs.

Reliance, a longtime Europe exporter, has committed to avoiding Russian crude for EU-bound loads. This dynamic positions India advantageously: leveraging bargain-basement prices to secure domestic energy and supercharge exports, even as geopolitical frictions intensify.