India Bought Record Russian Oil in July Amid US Threat of 100% Tariffs
Despite the potential threat of the US imposing tariffs of up to 100 percent on countries purchasing oil from Russia, India imported a record volume of Russian crude oil in July. According to the Centre for Research on Energy and Clean Air (CREA), India purchased Russian crude oil worth approximately €5.5 billion in July, a 2.1 percent increase compared to June.
In terms of volume, Russian crude oil imports rose to a record 2.8 million barrels per day (bpd). This accounts for approximately 55.5 percent of India's total crude oil imports, which stood at just over 5 million bpd. India's total purchases of Russian fossil fuels in July amounted to €6.4 billion, with crude oil accounting for 87 percent of the total.
The share of Russian crude oil in India's total oil imports has risen sharply since the start of the Ukraine war. In 2021, India's imports from Russia were less than 100,000 bpd. This figure rose to approximately 740,000 bpd in 2022 and around 1.8 million bpd in 2023. Russia became India's largest crude oil supplier in 2023.
The primary reason for the rise in imports in July was increased supply at smaller terminals. Imports at the HMEL Mundra terminal rose by 58 percent compared to June, while imports at the Vadinar SMPL terminal increased by 35 percent. Imports via Mumbai also saw a 37 percent increase. Conversely, imports at Paradip fell by 22 percent, while shipments at Jamnagar remained largely stable.
According to CREA, the average price of Russian Urals crude oil in July was $60.22 per barrel, which was above the G7 and EU price cap of $44.10 per barrel. Meanwhile, the US Senate has approved a bill imposing sanctions related to Russia and Iran by a vote of 86-11. The proposed legislation could empower President Donald Trump to impose tariffs of up to 100 percent on countries that are major buyers of Russian oil and gas. However, the law has not yet come into effect and requires approval from the US House of Representatives as well.
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