Workers walk past oil barrels at a filling station in Chennai, India on February 24, 2022. (AFP)

India surpassed China as the world's largest importer of Russian oil in July, recent data revealed.

New Delhi's increased purchasing of Russian oil stems from discounted prices offered by Moscow in response to sanctions imposed by Western countries due to Russia's war with Ukraine.

“India’s requirement for Russian oil is going to go up as long as there are no further tightening of sanctions,” an Indian refining source told Reuters.

Russia's crude oil constituted 4% of India’s total imports, reaching a record of 2.07 million barrels per day (bpd), a 4.2% increase compared to June and a 12% rise from last year, data on Indian shipments from the trade and industry sources revealed.

China's imports of Russian oil through pipelines and shipments amounted to 1.76 bpd in July, Chinese customs data showed, suggesting the drop in purchases may be attributed to lower profit margins from generating fuels.

India’s increased purchasing has shifted the distribution of Russian ESPO (Eastern Siberia–Pacific Ocean) Blend crude from its traditional Chinese customers to South Asia.

Russia's oil revenues on the rise in defiance of Western sanctions

Russia’s oil revenue exports surged by almost 50% in June 2024 compared to 2023 due to the country’s flagship Urals adaptation to Western sanctions, Bloomberg reported on July 3.

Back in June, Moscow's crude oil sales revenues saw a significant increase. Oil-related taxes reached 590.6 billion rubles ($6.7 billion), up from 402.8 billion rubles ($4.5 billion) in June 2023, according to Bloomberg’s calculations, based on the Russian Finance Ministry's financial data.

The figures revealed a 41% increase in the total oil and gas profits to 746.6 billion rubles ($8.4 billion), attributed to higher prices for Russia’s key export Urals blend. The ministry calculated June taxes based on the Urals price of $67.37 a barrel, up from $53.50 a year ago.

The imposition of a price cap and embargo on Russian oil by Western governments aimed to collapse the country’s economy, while also allowing Russian crude oil to flow into the international markets.

Russia retaliated to the West’s sanctions by redirecting most of its energy exports to Asia, selling well above the imposed price cap, primarily in India and China.

The financial report also revealed that budget revenues from Russia's oil and gas sectors experienced a remarkable surge of 73.5% from January to May this year, compared to the first five months of 2023. The generated profit from oil and gas sales during this period totaled 4.95 trillion rubles ($55.7 billion), and it is expected to reach 10.99 trillion rubles ($125 billion) this year.