India's Russian Crude Imports Face Temporary Dip Amid Sanctions Shuffle

India's imports of Russian crude oil are projected to decline sharply in December due to sanctions on major Russian exporters like Rosneft and Lukoil. Despite these disruptions, the demand for discounted Russian oil remains, and imports are expected to recover as new intermediaries and alternative channels emerge.

In December, India is experiencing a significant reduction in Russian crude oil imports, primarily due to sanctions imposed on major Russian exporters like Rosneft and Lukoil by the United States. This decline is anticipated to be temporary, affecting the previously increasing trend of Russian oil purchases at discounted rates.

According to data analytics firm Kpler, India's imports are expected to fall to around 1.2 million barrels per day, marking a sharp drop from November figures. The decline stems from short-term disruptions caused by shifting sourcing channels, rather than a fundamental change in India's oil procurement strategy.

Despite the current reduction, industry experts predict a gradual recovery. New intermediaries are stepping in to navigate the challenges posed by sanctions, ensuring that Russian crude continues to hold a place in India's energy portfolio, favored for its competitive pricing and refinery adaptability.

(With inputs from agencies.)