Indian Oil Minister Clarifies: Reduction in Russian Oil Imports Not Due to Payment Issues

According to data from intelligence provider Kpler, Indias oil imports from Russia last month fell to the lowest level since 2023. In 2023, Indian refiners purchased an average of 140,000 barrels of Sokol crude oil per day, but last month, they did not receive any Sokol oil shipments from Russia.

Previous media reports suggested that payment issues between India and Russia led to delivery failures, causing a significant drop in Indias oil imports from Russia. The report noted that the U.S. had imposed sanctions on some vessels and shippers for violating the Western price cap mechanism on Russian oil.

Minister Puri denied this claim. He explicitly stated that the reduction in Indias purchases of Russian oil is not due to payment issues but is based on refiners assessment of Russian oil prices. He pointed out that after the Russia-Ukraine conflict, Western countries generally avoided Russian oil, leading Russia to sell discounted oil to countries like India. As the worlds third-largest oil importer and consumer, India became a major buyer of Russian oil.

However, over time, Russian oil prices began to rise, and the discount margins gradually narrowed. This made Russian oil less attractive to Indian refiners. Minister Puri stated, If Russia does not offer us satisfactory discounts, why should we buy oil from them? Puri also revealed that some new oil-producing countries in remote areas are willing to offer more favorable discounts than Russia, but he did not specify the names of these countries.

Indias Oil Minister Clarifies: Reduction in Oil Imports from Russia Not Due to Payment Issues