Russian oil imports to India rise from 1% to 21%
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New Delhi, Oct 11: Russian fossil fuel exports to China and India have risen significantly since Moscow invaded Ukraine early this year, helping to replenish the Kremlin's war chest even as shipments to the U.S., Europe, and Japan fall sharply.
The value of Russia's energy exports to China increased 17%, or 30 million euros ($29 million), in the July-August period compared with February and March, according to an analysis of data from the Center for Research on Energy and Clean Air, a Finnish think tank. Coal exports jumped 53%, while oil shipments rose 16%.
Exports to India increased by a factor of 5.7, or 40 million euros, during the same period, marking the most significant increase in the world. Russia was the second-largest supplier of crude for India in June, jumping from 10th place in 2021, according to Indian trade statistics. Russia's overall daily exports of oil, coal, and natural gas in July and August were down 18% from February and March. Natural gas sent via pipeline sustained the largest decline of 56%, followed by a 34% drop in petroleum products and a 29% fall in coal. Crude oil, on the other hand, increased by 19%. Energy is a crucial industry for Russia, with oil and gas accounting for about 40% of government revenue. To starve Moscow of funds to finance its war in Ukraine, the U.S., Japan, and the European Union have imposed a series of sanctions on Russian oil and coal. As a result, Russia's fossil fuel exports to the EU fell by 35%. The U.S. and the U.K. saw plunges of roughly 90%, and Japan a drop of around 70%. The decrease in exports to these countries totals about 250 million euros per day. But the overall decrease in Russia's energy exports is much smaller, at about 170 million euros because of Moscow's successful efforts to sell to countries not participating in the sanctions, such as China and India, at a discount.
Exports to the Middle East also expanded, with shipments to the United Arab Emirates and Egypt increasing by factors of about nine and three. They are reportedly processing Russian crude oil into petrochemical products for export to the rest of the world.