Eastern Maritime Corridor Boosts India and Russia Trade

Recently, India emerged as the largest purchaser of Russian oil, overtaking China, which coincided with the establishment of the Eastern Maritime Corridor, which has enhanced trade between India and Russia. The new sea route from Chennai to Vladivostok has streamlined the transport of various commodities.

New Maritime Route Overview

The Chennai-Vladivostok route spans approximately 5,600 nautical miles, and has reduced transit times by up to 16 days, allowing goods to reach their destinations in just 24 days. In contrast, the traditional route via Europe takes over 40 days.

Key Commodities Transported

Since early 2024, the route has facilitated the transport of crude oil, coal, liquefied natural gas (LNG), fertilizers, and containerized cargo. The efficiency of this route has been particularly beneficial for crude oil shipments.

Speed of Shipments

A large ship can now travel from Vladivostok to Chennai in around 12 days. This is improvement compared to the 40 days required on the older route from Mumbai to St. Petersburg. Vladivostok serves as the largest Russian port on the Pacific Ocean. Indian ports such as Chennai, Paradip, Visakhapatnam, and Kolkata are utilized based on cargo type.

Recently, India’s top imports through this route included crude oil, coal, coke, vegetable oils, and fertilizers. Exports to Russia featured processed minerals, iron and steel, tea, and marine products.

Oil Trade Dynamics

By July 2024, India had solidified its position as the largest buyer of Russian oil. Although overall imports decreased in the latter half of the year due to maintenance at refineries, shipments of Urals crude reached a four-month high in October.

Closer ties with Russia offer India advantages beyond oil trade. These relations help reduce Russia’s dependence on China and enhance cooperation in military and nuclear technologies. Russian President Vladimir Putin is anticipated to visit India in 2025.

GKToday Notes:

1. Eastern Maritime Corridor: This new sea route enhances trade between India and Russia. It spans 5,600 nautical miles, reducing transit time for shipments .
2. Urals Crude: This grade of crude oil constitutes the bulk of Russia’s exports to India. It remains in demand, despite fluctuating discounts and has seen a rise in shipments.
3. Vladivostok: Vladivostok is Russia’s largest port on the Pacific Ocean. Its strategic location near the Sino-Russia border facilitates trade with India.
4. Chennai Port: Chennai serves as a major Indian port for shipments. The new route allows quicker transport of various commodities, enhancing India’s trade efficiency with Russia.

Month: Current Affairs - December, 2024

Category: International / World Current Affairs