Russia's coffers at record high fuelled by over 13-time jump in India's crude oil buys: Report
Analysis suggests that India's oil purchases from Russia, conducted through covert shipping routes and ship-to-ship transfers, contribute to Russia's ability to sustain its military operations in Ukraine and evade sanctions.
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FollowRussia's record oil sales to India, facilitated by covert shipping routes and refineries, provided a lifeline for Moscow amidst Western sanctions, CNN reported on Monday. Russia, now entering its third year of conflict in Ukraine, is enjoying a substantial financial boost from record crude oil sales to India, according to a new analysis.Â
Despite strained diplomatic relations between India and Russia and concerns over Moscow's involvement in the war in Ukraine, India has significantly increased its purchases of Russian crude oil, resulting in unprecedented revenue for Russia.Â
The analysis, conducted by the Centre for Research on Energy and Clean Air (CREA) and shared with CNN, revealed that India's crude purchases from Russia have surged by over 13 times compared to pre-war volumes, replacing reduced purchases by Western buyers due to sanctions imposed over Russia's invasion of Ukraine.
While India's oil purchases from Russia are not subject to sanctions, experts suggest that the large volume of shipments may involve covert shipping routes and transfers between vessels, known as ship-to-ship transfers, to maximize profits and evade detection. These transfers, although sometimes legal, are often used as a tactic to bypass sanctions.
Despite efforts by the US to impose sanctions on ships and companies suspected of aiding Russian crude oil trade, the so-called "shadow fleet" of crude tankers created by Moscow continues to operate, CNN reported. These tankers, with opaque ownership and complex routes, facilitate the evasion of sanctions and enable Russia to maintain its oil revenue amidst Western pressure, the US news outlet added.
India's role in this complex oil trade is significant, with some of the Russian crude refined in Indian refineries and then exported to countries enforcing sanctions against Russian oil, such as the United States. This indirect trade route allows Russia to profit from the refining and export process, further bolstering its finances, the CNN report further said.
However, critics argue that such trade practices exploit legal loopholes and contribute to Russia's ability to sustain its military operations in Ukraine. Despite the financial benefits, CNN reported, the involvement of Indian refineries and ports in refining Russian crude raises ethical concerns and underscores the complexity of global oil trade dynamics.
