India’s trade relations with Russia have deepened this year, largely due to the war in Ukraine.
The country’s bilateral trade with Russia has risen to a record high of $18.2 billion between April and August, according to India’s ministry of commerce and industry. This was mainly fuelled by a surge in the import of oil and fertilizers.
When the war with Ukraine broke out in February, many countries, including India, scrambled to find trade alternatives for commodities Russia exported.
However, heavy discounts offered on Russian crude and fertilizers compelled India to maintain trade.
Russia is now India’s seventh-biggest trading partner
India and Russia have a history of strong strategic, military, economic, and diplomatic relationships.
India’s merchandise imports from Russia include petroleum oil and other fuel items, fertilizers, coffee and tea, spices, nuclear reactors, and animal and vegetable fats, among others.
Together, fertilizers and fuel alone accounted for over 91% of this in 2022.
Russia’s crude oil imports to India
The share of crude oil imports from Russia in Indian imports has risen exponentially this year. In September, Russia became India’s second-largest crude oil supplier.
“India may consider importing more Russian crude this quarter as refiners ramp up runs to meet the seasonal rise in domestic demand and higher export demand from Europe, but it all hinges on prices of Russian crude offered to them relative to the rival Middle East and West African grades,” Serena Huang, an analyst at energy cargo tracker Vortexa, told The Economic Times newspaper.