China and India account for roughly 90% of Russia's seaborne crude exports, Kpler data shows.
As of January 14, 2023, the largest volume of Russian crude oil shipments went to China, at 55.2 million metric tons per day based on a 30-day running average. Since the beginning of 2022, the shipments to the European Union (EU) and the United States have decreased significantly.
China, India, and others have ramped up imports of Russian oil and are selling it to the West, a new study found. Analysts at CREA said the "laundromat" operation undermines the price cap and sanctions on Moscow.
Germany's total imports of crude last year rose to 88.2 million tonnes from 81.3 million in 2021. Within the total, Russia accounted for 22.4 million, the United States for 12.1 million and Kazakhstan for 9.1 million, allowing for rounded figures.
But Russia, the world's second-largest exporter of crude, has found willing buyers in China and India to replace European customers.
When war in Ukraine threatened its energy security, Germany weaned itself off Russian gas. Russia's invasion of Ukraine profoundly reshaped the global markets for oil and gas. Few countries – aside from Ukraine itself – have felt the impact of the war on energy supplies as much as Germany.
Behind China and India, Turkey and Bulgaria are the biggest buyers of Russian crude.
Currently, Indian refiners are continuing to use dollars to buy Russian oil, but have been looking for alternative ways to pay. China's state-owned oil enterprises are increasingly using the Chinese renminbi, rather than the dollar, to finance oil purchases.
Chinese imports of Russian oil rise by nearly one-quarter from the same period in 2022. Russia overtook Saudi Arabia to be China's top oil supplier in the first two months of 2023, according to Chinese government data, as buyers snapped up sanctioned Russian oil at steep discounts.
Overview. Ukraine is an important transit country for supplies of oil and natural gas from Russia to countries throughout Europe.
"In 2023, Europe will likely, for the first time, need to survive a full calendar year with only minimal volumes of Russian pipeline gas," S&P Global analysts Michael Stoppard and Alun Davies said in a recent report.
Since the outbreak of the war in Ukraine on February 24, 2022, India has been importing Russian crude oil on a massive scale at low cost, refining it, and then selling the part it does not consume to Westerners at market prices, thereby circumventing the sanctions regime.
The U.S. is currently both the largest producer and the largest consumer of crude oil in the world, with highly populated countries like China and India following close behind.
While the United States has imported less crude oil over time, countries like China and India have generally imported more oil in terms of the last decade up until recently. Up until to 2021, China's crude oil imports rose for two decades given the nation's growing economy.
Japan has begun purchasing Russian crude oil above the $60-a-barrel cap, breaking with Western allies thanks to an exception authorized by the United States. As many European nations weaned themselves off Russian oil in response to the invasion of Ukraine, Japan stepped up its purchase of Russian natural gas.
Japan's recent decision to buy Russian oil at above $60 a barrel, and India's continuing purchases, underline some of the hard truths about energy security. Russia's war in Ukraine has sent the global oil markets into a tizzy.
The Russian economy is shrinking
According to the World Bank, the International Monetary Fund (IMF) and the Organisation for Economic Cooperation and Development (OECD), 2022 was a bad year for the Russian economy. It is estimated that in 2022, Russia's gross domestic product (GDP) dropped by 2.1%.
Those who are closely tracking India's relations with Russia, however, did confirm that India is indeed using dirhams to pay Russia, but added that it was likely to be a short-lived arrangement because Russia has no need of so many dirhams.
India imports most of its oil from the Middle East, with Iraq and Saudi Arabia being primary. Here is a quick look at India's crude oil imports according to regions in 2021: Middle East: 52.7%
Norway has replaced Russia as the biggest gas supplier of Europe, said the EU Commissioner Kadri Simson, as she was addressing a committee meeting and a press conference in the European Parliament. “Since September 2022, Russian gas is about 8 percent of all pipeline gas imported in the EU.
New research released by the International Oil & Gas Producers (IOGP) Europe and the American Petroleum Institute (API) shows Europe can progressively rebalance its gas supply and replace Russian gas imports well before 2030, despite short term challenges and significant impact to society.
A full shutdown, while not their base case, could drive European household energy costs up by about 65% to around €500 ($512) per month, according to estimates by Goldman Sachs Research. Industries like chemicals and cement in Germany and Italy might have to cut their gas usage by as much as 80%.