Claim: “[…] India, seizing the moment and aware of the sanctions, is buying oil from Russia at a 40 percent discount,” writes Twitter user Igor Fedorovsky in Russian.
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DW fact check: Correct.
Since the Russian invasion of Ukraine on February 24, Indian refiners have increased imports of crude oil from Russia. According to the Finland-based Center for Research on Energy and Clean Air (Crea), imports have increased sharply since the start of the Russian invasion.
Accordingly, India’s share of Russian crude oil exports rose from 1 to 18 percent by May. Other suppliers have been squeezed out, for example from Saudi Arabia and Iraq.
But the discounts on Russian crude oil are only one reason for the increased imports. Another reason is the growing demand for energy on the subcontinent. According to OPEC estimates, the current national demand will increase from 4.7 million barrels per day to 5.15 million barrels in the coming year.
According to British Petrol BP’s “Statistical Review of World Energy 2021”, Indian domestic production was just 0.77 million barrels of oil per day in 2020.
According to BP, India is already the world’s third largest energy consumer. The India Brand Equity Foundation (Ibef), which is subordinate to the Indian government, describes the thirst for energy in the following words: “India’s need for oil will double to around eleven million barrels a day by 2045”.
Claim: “ […] India refines the Russian oil and sells the final product to the US and EU. Really: Capitalism at it’s best,” writes Left Party member Dominik Lehmann.
DW fact check: Not verifiable.
It is true that India has recently not only massively increased its oil imports but also its oil exports. According to the Indian Ministry of Commerce, these totaled $15.99 billion in April and May 2022. In the same period of 2021, the figure was $8.94 billion.
The Crea research center concludes that Russian crude oil is processed in India. The international energy consulting firm Rystadenergy shares this assessment: “As was the case with the oil embargo against Iran, crude oil from Russia is now being refined in other countries,” according to a June 20 analysis by the company. It is almost impossible to distinguish this oil on the international oil market.
The statistics of the Indian Ministry of Commerce also show the changed trade routes. For April of this year, they report oil exports to the EU worth around one billion dollars. In April 2021, the export of Indian mineral oil products was still 287 million euros.
North America also increased imports of petroleum products from India. In April 2022, imports totaled $435 million, in April 2021 the value was $220 million.
However, it remains to be seen how lucrative mineral oil exports really are for India. According to the Crea report, the discounts on the purchase of Russian crude oil and the high oil prices on the world market are offset by sharply increased costs for transport and insurance of the freight.
Claim: “Asian countries are buying up discounted Russian oil, circumventing Western sanctions. It seems that India is no friend of democracy,” writes Alan Sked, Professor Emeritus of International History at the London School of Economics (LSE).
DW fact check: misleading.
There is no ban prohibiting India from trading Russian oil in commodities. A complete embargo against Russian oil, gas and coal only exists in the USA, Canada and Australia.
In the EU and Great Britain, the tightened sanctions against Russia were only decided on June 3 and are only gradually coming into force. There are also numerous exceptions.
Britain has set a transitional period until the end of the year for the import ban on Russian oil products. In the EU, coal imports will be banned from August and oil imports by ship from December. Deliveries of oil and gas via pipelines are excluded from the sanctions.
Before the start of the embargo, many western mineral oil companies concluded additional supply contracts in order to benefit from the price reductions on Russian crude oil. European shipping companies are also making money from the longer and more complicated trade routes triggered by the embargo.
According to the Crea research center, in April and May this year, 75 percent of Russian crude oil was shipped to India and the Middle East on Greek tankers.
Conclusion: Whether India is circumventing the EU embargo against Russia will be seen at the earliest when this has fully come into force. However, proving the origin of oil products will remain difficult, says Rystadenergy Vice President Wei Cheong Ho: “It may result in Europe importing mineral oil products from India that are mixed with Russian oil. Tracking the use of Russian oil will be challenging.”
Autor: Astrid Prange de Oliveira, Sinem Ozdemir
Originally Posted “Rise in Russian Crude Oil Imports: Is India Violating EU Oil Embargo?” comes from Deutsche Welle.
