India resumes purchases of Russian oil: how sanctions work
Reliance Industries Limited has resumed purchases of Russian crude oil after the introduction of US sanctions, buying oil from suppliers not subject to sanctions. Reliance Industries Limited is the owner of the world’s largest oil refinery located in the state of Gujarat.
Previously, after the introduction of US sanctions, the company stopped buying oil from Russia. The last shipment under contracts signed before October 22 arrived in India on December 17. Oil imports from Russia are expected to fall to about 800,000 barrels per day, while the average import volumes from Russia in November were 1.9 million barrels per day.
In the last four weeks, Moscow has shipped about 3.87 million barrels per day. The price for one barrel of Russian Urals oil is around $34. These factors indicate that despite the sanctions, India continues to seek opportunities for importing Russian oil, adapting its strategies to new market conditions.
Impact on India's energy policy
The resumption of Russian oil imports by India may indicate the country's desire to diversify its energy resources and reduce dependence on other suppliers. This could also impact global oil prices, as India is one of the largest consumers of fuel. Continuing to purchase Russian oil under sanctions could be a signal to other countries looking for solutions in the context of the energy crisis.