Friday, 17 May, 2024
By: Anshul Vipat
Data showed that India's oil imports from the Eurasian country surged post the Ukraine war. Image source: IANS
The surge of trade between the two countries is mainly due to a sudden jump in imports from Moscow, which began to surge earlier this year
“India will continue to buy oil from Russia", finance minister Nirmala Sitharaman had declared even as the West mounted pressure on New Delhi to isolate Moscow. True to her words, India has not only continued to buy oil at discounted rates from Russia, but has increased the intake by a whopping 4.7 times since April 2022. Not just oil, India-Russia overall trade has increased to a whopping five times since the outbreak of Russia-Ukraine war.
Trade between the two countries reached $18.2bn between April and August this year, compared to bilateral trade of $13.12bn in the last financial year, latest data released by India’s Department of Commerce showed. Goods traded include petroleum oil, mineral fuels, mineral oils and mineral waxes and fertilisers. The total annual bilateral trade between the two countries stood at $13,124.68 million in 2021-22, and $8,141.26 million in 2020-21. Pre-COVID, it was $10,110.68 million in 2019-20, $8,229.91 million in 2018-19, and $10,686.85 million in 2017-18.
The surge of trade between the two countries is mainly due to a sudden jump in imports from Moscow, which began to surge earlier this year. There was an over 500 percent increase in three months – 561.1 percent in June, 577.63 percent in July and 642.68 percent in August – as compared to the same months of the previous year.
Of the total $18,229.03 million bilateral trade in April-August, India’s imports from Russia accounted for $17,236.29 million, while New Delhi’s exports to Moscow were only worth $992.73 million, leaving a negative trade balance of $16,243.56 million. In 2021-22, India’s exports to Russia stood at $3,254.68 million, while imports from Moscow were valued at $9,869.99 million.
With the sharp spike in trade, Russia has now become India’s seventh biggest trading partner during the first five months of 2022-23— up from its 25th position last year. The United States continues to remain India's biggest trading partner with a total volume of $57,632.37 million, 14 percent more China, India's second biggest trading partner. The two are followed by Saudi Arabia, Iraq and Indonesia.
Surge in oil imports
Oil and fertilisers formed more than 90 percent of Moscow's exports. Data showed that India's oil imports from the Eurasian country surged post the Ukraine war.
In September, India's oil imports from Russia surged to 896,000 barrels per day (bpd) accounting for nearly a fifth of overall imports by the world's third largest oil consumer, data provided by energy cargo tracker Vortexa revealed. This was slightly down from the record of around 950,000 bpd in June. In July, India imported 819,000 barrels per day (bpd), up from 650,000 bpd in May and 33,000 bpd a year ago. The higher oil intake from Russia raised its share of India's overall imports to 19.8 percent from 16.4 percent in September. On the other hand, those from Iraq and Saudi Arabia dropped by 10.5 percent and 13.5 percent, respectively, dragging the share of the Middle East to 56.5 percent from 59.3 percent, the data showed. OPEC's share of India's oil imports has been declining since March. Although, Iraq continues to remain India's biggest oil supplier. Indian refiners have been snapping up Russian oil sold at hefty discounts to Brent and Middle East staples after some Western companies and countries shunned purchases from Moscow.
Despite critisism from the West, India has continued its trade relations with its erstwhile cold war partner. Time and again, India has defended its decision to buy discounted Russian oil citing national interests. Just last month, External Affairs Minister S Jaishankar said that it was his "obligation" and "moral duty" to ensure that the people in India get the best deal. We are being very open and honest about our interests. I have a country that has a per capita income of two thousand dollars. These are not people who can afford higher energy prices. And thus, will continue to do what we think is the best", the minister said as quoted by The Hindu. New Delhi has also stayed away from out rightly condemning Russia despite piling pressure from the US and its allies.
“India will continue to buy oil from Russia", finance minister Nirmala Sitharaman had declared even as the West mounted pressure on New Delhi to isolate Moscow. True to her words, India has not only continued to buy oil at discounted rates from Russia, but has increased the intake by a whopping 4.7 times since April 2022. Not just oil, India-Russia overall trade has increased to a whopping five times since the outbreak of Russia-Ukraine war.
Trade between the two countries reached $18.2bn between April and August this year, compared to bilateral trade of $13.12bn in the last financial year, latest data released by India’s Department of Commerce showed. Goods traded include petroleum oil, mineral fuels, mineral oils and mineral waxes and fertilisers. The total annual bilateral trade between the two countries stood at $13,124.68 million in 2021-22, and $8,141.26 million in 2020-21. Pre-COVID, it was $10,110.68 million in 2019-20, $8,229.91 million in 2018-19, and $10,686.85 million in 2017-18.
The surge of trade between the two countries is mainly due to a sudden jump in imports from Moscow, which began to surge earlier this year. There was an over 500 percent increase in three months – 561.1 percent in June, 577.63 percent in July and 642.68 percent in August – as compared to the same months of the previous year.
Of the total $18,229.03 million bilateral trade in April-August, India’s imports from Russia accounted for $17,236.29 million, while New Delhi’s exports to Moscow were only worth $992.73 million, leaving a negative trade balance of $16,243.56 million. In 2021-22, India’s exports to Russia stood at $3,254.68 million, while imports from Moscow were valued at $9,869.99 million.
With the sharp spike in trade, Russia has now become India’s seventh biggest trading partner during the first five months of 2022-23— up from its 25th position last year. The United States continues to remain India's biggest trading partner with a total volume of $57,632.37 million, 14 percent more China, India's second biggest trading partner. The two are followed by Saudi Arabia, Iraq and Indonesia.
Surge in oil imports
Oil and fertilisers formed more than 90 percent of Moscow's exports. Data showed that India's oil imports from the Eurasian country surged post the Ukraine war.
In September, India's oil imports from Russia surged to 896,000 barrels per day (bpd) accounting for nearly a fifth of overall imports by the world's third largest oil consumer, data provided by energy cargo tracker Vortexa revealed. This was slightly down from the record of around 950,000 bpd in June. In July, India imported 819,000 barrels per day (bpd), up from 650,000 bpd in May and 33,000 bpd a year ago. The higher oil intake from Russia raised its share of India's overall imports to 19.8 percent from 16.4 percent in September. On the other hand, those from Iraq and Saudi Arabia dropped by 10.5 percent and 13.5 percent, respectively, dragging the share of the Middle East to 56.5 percent from 59.3 percent, the data showed. OPEC's share of India's oil imports has been declining since March. Although, Iraq continues to remain India's biggest oil supplier. Indian refiners have been snapping up Russian oil sold at hefty discounts to Brent and Middle East staples after some Western companies and countries shunned purchases from Moscow.
Despite critisism from the West, India has continued its trade relations with its erstwhile cold war partner. Time and again, India has defended its decision to buy discounted Russian oil citing national interests. Just last month, External Affairs Minister S Jaishankar said that it was his "obligation" and "moral duty" to ensure that the people in India get the best deal. We are being very open and honest about our interests. I have a country that has a per capita income of two thousand dollars. These are not people who can afford higher energy prices. And thus, will continue to do what we think is the best", the minister said as quoted by The Hindu. New Delhi has also stayed away from out rightly condemning Russia despite piling pressure from the US and its allies.
“India will continue to buy oil from Russia", finance minister Nirmala Sitharaman had declared even as the West mounted pressure on New Delhi to isolate Moscow. True to her words, India has not only continued to buy oil at discounted rates from Russia, but has increased the intake by a whopping 4.7 times since April 2022. Not just oil, India-Russia overall trade has increased to a whopping five times since the outbreak of Russia-Ukraine war.
Trade between the two countries reached $18.2bn between April and August this year, compared to bilateral trade of $13.12bn in the last financial year, latest data released by India’s Department of Commerce showed. Goods traded include petroleum oil, mineral fuels, mineral oils and mineral waxes and fertilisers. The total annual bilateral trade between the two countries stood at $13,124.68 million in 2021-22, and $8,141.26 million in 2020-21. Pre-COVID, it was $10,110.68 million in 2019-20, $8,229.91 million in 2018-19, and $10,686.85 million in 2017-18.
The surge of trade between the two countries is mainly due to a sudden jump in imports from Moscow, which began to surge earlier this year. There was an over 500 percent increase in three months – 561.1 percent in June, 577.63 percent in July and 642.68 percent in August – as compared to the same months of the previous year.
Of the total $18,229.03 million bilateral trade in April-August, India’s imports from Russia accounted for $17,236.29 million, while New Delhi’s exports to Moscow were only worth $992.73 million, leaving a negative trade balance of $16,243.56 million. In 2021-22, India’s exports to Russia stood at $3,254.68 million, while imports from Moscow were valued at $9,869.99 million.
With the sharp spike in trade, Russia has now become India’s seventh biggest trading partner during the first five months of 2022-23— up from its 25th position last year. The United States continues to remain India's biggest trading partner with a total volume of $57,632.37 million, 14 percent more China, India's second biggest trading partner. The two are followed by Saudi Arabia, Iraq and Indonesia.
Surge in oil imports
Oil and fertilisers formed more than 90 percent of Moscow's exports. Data showed that India's oil imports from the Eurasian country surged post the Ukraine war.
In September, India's oil imports from Russia surged to 896,000 barrels per day (bpd) accounting for nearly a fifth of overall imports by the world's third largest oil consumer, data provided by energy cargo tracker Vortexa revealed. This was slightly down from the record of around 950,000 bpd in June. In July, India imported 819,000 barrels per day (bpd), up from 650,000 bpd in May and 33,000 bpd a year ago. The higher oil intake from Russia raised its share of India's overall imports to 19.8 percent from 16.4 percent in September. On the other hand, those from Iraq and Saudi Arabia dropped by 10.5 percent and 13.5 percent, respectively, dragging the share of the Middle East to 56.5 percent from 59.3 percent, the data showed. OPEC's share of India's oil imports has been declining since March. Although, Iraq continues to remain India's biggest oil supplier. Indian refiners have been snapping up Russian oil sold at hefty discounts to Brent and Middle East staples after some Western companies and countries shunned purchases from Moscow.
Despite critisism from the West, India has continued its trade relations with its erstwhile cold war partner. Time and again, India has defended its decision to buy discounted Russian oil citing national interests. Just last month, External Affairs Minister S Jaishankar said that it was his "obligation" and "moral duty" to ensure that the people in India get the best deal. We are being very open and honest about our interests. I have a country that has a per capita income of two thousand dollars. These are not people who can afford higher energy prices. And thus, will continue to do what we think is the best", the minister said as quoted by The Hindu. New Delhi has also stayed away from out rightly condemning Russia despite piling pressure from the US and its allies.
