The imposition of sanctions by the United States and European Union countries on Russia has created a new space for the realignment of global oil producers. Restrictions on Russian trade in energy sources have caused major crude oil importers such as India to look to new and diverse sources of crude oil, including Brazil. While the quantum of oil imports from Brazil constitutes a small fraction of India’s overall crude oil import basket, official data from the Brazilian government shows that the quantum of oil imports has more than doubled since the fiscal year 2019. According to a senior diplomat, the total quantum of crude oil imports from Brazil was US$981,781,930 in 2019, rose to US$1,224,302,299 in fiscal 2020, and then jumped over 80% to US$2,243,933,674 in the fiscal year 2021. According to India’s ambassador to Brazil, Suresh K Reddy, “Brazil has large oil reserves that can support India’s growing demand.” For him, it is in India’s interest that the two countries build a long-term relationship in the energy sector. Both countries had several discussions, and more meetings and visits are expected to occur.
Source: O Petróleo/Datamar News