Energy hungry India is being targeted for purchasing Russian oil to meet its growing demand but fact remains that Europe and parts of Asia are bigger importers of Russian oil and gas even to this date.
India’s daily requirement of crude oil is about five million barrels or about 1800 million barrels a year. And it is a well known fact that 85% of India’s crude oil requirements are met through imports. For FY 2020-21, India’s oil imports stood at 1440.3 million barrels; while for the current FY, India has already imported 1289.3 million barrels.
Even with announced reductions by one third, EU’s reliance on Russian gas will still remain significant. For gas itself, Europe is still the largest regional importer of Russia’s natural gas, accounting for nearly 75% of Russia’s total natural gas exports.
The recipients include Germany and Italy. Exceptions and exclusions have been built into the design of the sanctions so that Europe can continue to use and pay for Russian crude and gas, sources pointed out.
China and Japan are among the top 10 destinations, together accounting for approximately 10%, or 882 billion cubic feet, of Russia’s natural gas exports.
Principal sources of import of crude oil by India are: Iraq – 23%; Saudi Arabia – 18%; UAE – 11.3%; Nigeria – 8% and USA – 7.3% It may be pointed out here that Russia is not in top 10 sources of Indian crude imports.
Russian crude imports account for less than 1% of India’s consumption. India imported only 0.419 Million Metric Tonnes (MMT) of crude oil from Russia, as compared to overall crude oil imports of 175.9 MMT in this FY.
Purchases of two-three million barrels of Russian crude by Indian refiners ignore the fact that two million barrels is not enough to meet consumption requirements for even half a day, experts explained.