New Delhi: India, the second-biggest buyer of Russian oil, spent as much as 2.5 billion euro on purchases of crude oil from Moscow in October, ahead of new sanctions being slapped on Russian entities. India, however, remained the second-largest buyer of Russian fossil fuels in October behind China, according to the Centre for Research on Energy and Clean Air (CREA).

As per the European think tank, India’s spending in October was unchanged from the 2.5 billion euro spent on buying Russian oil in September. “India remained the second-largest buyer of Russian fossil fuels, importing a total of EUR 3.1 billion. Crude oil dominated India’s purchases at 81 per cent (EUR 2.5 billion), followed by coal at 11 per cent (EUR 351 million) and oil products at 7 per cent (EUR 222 million),” the CREA said in its monthly tracking report.

On October 22, the US imposed sanctions on Rosneft and Lukoil, two of the largest oil producers in Russia, to cut off the Kremlin’s resources for funding the Ukraine war. The sanctions have resulted in companies like Reliance Industries, HPCL-Mittal Energy Ltd and Mangalore Refinery and Petrochemicals Ltd halting imports for now. Russia, however, shipped 60 million barrels of crude oil in October, with Rosneft and Lukoil together accounting for 45 million barrels.

Traditionally reliant on Middle Eastern oil, India significantly increased its imports from Russia following the February 2022 Ukraine invasion. Western sanctions and reduced European demand made Russian oil available at steep discounts. As a result, India’s Russian crude imports surged from under 1 per cent to nearly 40 percent of its total crude oil imports in a short span.

In September, India had spent a total of 3.6 billion euro – 2.5 billion euro on crude oil, 452 million euro on coal and 344 million euro on oil products. “India’s Russian crude imports in October recorded an 11 per cent month-on-month increase. While private refiners’ imports constituted over two-thirds of India’s total imports, state-owned refineries almost doubled their Russian volumes month-on-month in October,” the CREA said.

“In a keen development, the Rosneft-owned Vadinar refinery (in Gujarat) – now sanctioned by the EU and the UK – increased its production to 90 per cent in October. After the EU sanctions in July, the refinery has been importing crude solely from Russia. In October, their imports from Russia recorded a 32 per cent month-on-month increase to their highest volumes since the full-scale invasion,” it added.