How India’s imports of Russian oil have lubricated global markets
But as the country’s importance in the global oil market grows, risks loom
In February america slapped new sanctions on Sovcomflot, a Russian state-owned shipping firm responsible for carrying around 15% of Russian oil exports to India. Almost immediately, Indian importers stopped taking shipments from Sovcomflot tankers. But that did little to stem the flow of Russian crude to India, the world’s third-biggest consumer of oil. Deliveries increased by 6% in March, compared with February. Exporters arranged alternative transport to India—probably through the shadow fleet that helps them bypass sanctions. India has also bought Russian crude at prices below the $60-per-barrel price cap imposed by the West. Taken together, these purchases have helped make India the second-biggest importer of Russian oil, behind China.
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This article appeared in the Asia section of the print edition under the headline “Usefully oleaginous”
From the April 13th 2024 edition
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