India continued to import Russian crude at a rate of over 1 million barrels daily this month, despite U.S. sanctions on the two biggest exporters that came into effect in late November.
Reuters reported today that the average daily so far this month has stood at 1.2 million barrels. That’s down from 1.77 million barrels in November, ahead of the sanctions, but nowhere near the sharp drop that many analysts forecast. Reuters used LSEG data for its report, as well as unnamed sources. One of these told the publication the rate of imports could rise to 1.5 million barrels daily by the end of the year.
What’s more, flows could remain strong in January as well, as non-sanctioned oil companies step in to put their name on the shipments instead of Rosneft and Lukoil. The targets of the latest U.S. sanctions handled around half of Russia’s total oil exports, or some 2 million barrels daily, until November 21, when the sanctions came into effect. Since then, importers and exporters alike have been looking for—and finding—ways around the sanctions. As many expected, while exports by Rosneft and Lukoil are down, exports of crude by non-sanctioned companies have spiked since November 21.
Meanwhile, Bloomberg, earlier this week, said Indian crude oil imports from Russia could drop to 800,000 barrels daily this month because of the sanctions. The report cited tighter checks by the Indian authorities on sanction compliance, including strict inspections of tankers carrying foreign crude and insured in places other than the West, the so-called “shadow fleet”. Bloomberg also reported that all but one Indian refiner—Nayara Energy—had reduced their intake of Russian crude. The Reuters report, however, suggests these checks are not at odds with continued robust oil flows from Russia.
