India’s imports of Russian crude halved in November to 948,000 bpd so far, down 50% from last month, as sanctions on Rosneft and Lukoil near implementation.
China and Turkey have also sharply cut purchases, with Russian crude exports to China down 39% and to Turkey down 59%.
Upcoming US secondary sanctions have pushed buyers to pull back, while Russia increasingly relies on shadow-fleet tankers and opaque shipping channels to move crude.
Russian Oil Imports Fall By Half Ahead of US Sanctions Deadline
The threat of secondary sanctions is precisely why India and China, two of the largest purchasers of Russian crude, along with Turkey have reduced their intake from Moscow
Freepik
Summary
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Russian crude oil imports fell by half in November to 948,000 barrels per day so far, a 50% reduction from 1.89 million bpd last month, data from global real-time analytics firm Kpler showed.
According to the report, the sharp drop in Russian oil shipments is largely attributed to the recent US sanctions on Rosneft and Lukoil. As reported by Moneycontrol, the sanctions are likely to temporarily reshape India’s crude imports, even though they may not alter New Delhi’s long-term strategy of maintaining supply diversity and cost advantages.
Sanctions To Be Implemented From November 21
Russia exported 706,000 bpd of crude to China in the first 19 days of November, Kpler data showed. However, this is still down 39% month-on-month. Russia exported 136,000 bpd to Turkey during the same period, a 59% decline.
The Office of Foreign Assets Control (OFAC) sanctioned two of Russia’s largest oil companies, and the measures will take effect from November 21. OFAC has also warned that secondary sanctions will target buyers of Russian oil from these companies. The threat of secondary sanctions is precisely why India and China—two of the largest purchasers of Russian crude—along with Turkey have reduced their intake from Moscow, the report said.
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According to a report by The Times of India, Russia’s oil transportation networks are increasingly using less transparent methods, including shadow-fleet tankers and sanctioned vessels, for the majority of crude shipments before transferring to non-sanctioned vessels permitted to dock at Indian ports. The Helsinki-based Centre for Research on Energy and Clean Air noted that sanctioned tankers transported 44% of Russian crude in October.
Why Has the US Sanctioned Russian Oil Companies?
US President Donald Trump has said repeatedly that Russia’s oil revenue is fuelling the ongoing war in Ukraine. The US and the European Commission have imposed sanctions on Russian oil in an attempt to limit Moscow’s energy revenues, pressure President Vladimir Putin, and push him towards a ceasefire with Kyiv. However, the West has been unsuccessful so far, as Putin shows no signs of being pressured or taking steps to end the war.
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