The main reason is Russia’s record – high interest rates, which have driven the cost of financing deals to a critical level, Reuters reports, citing sources and customs and shipping data.

India, one of the largest buyers of Russian oil, continues to import actively, benefiting from significant price advantages due to sanctions pressure on Moscow. However, Russia’s recent key rate hike to 21%, the highest in two decades, has forced many traders out of the market. The gap is being filled by major players like Litasco Middle East (a subsidiary of Lukoil) and Dubai – based firms Hinera Trading and Black Pearl Energy Trading.

Despite high demand for Russian oil, reduced discounts have led Indian refiners like Reliance Industries and Nayara Energy to cut imports by 18% in November.