India is purchasing Russian crude oil in a big way as Strait of Hormuz disruptions continue to constrain global oil supply. India imports almost 90% of its crude oil needs and the ongoing US-Iran war has meant that Russian crude oil is back in focus.
India had stepped down its Russian crude purchases after US sanctions on Rosneft and Lukoil, but with Middle East supply uncertain, it has gone back to aggressively buying Russian oil. Indian refiners have ramped up purchases of Russian crude over the past two months and expect procurement to remain high through the rest of the year amid easing concerns around potential Donald Trump administration sanctions.“India is grabbing all the Russian crude it can get its hands on,” said Vandana Hari, founder of Singapore-based consultancy Vanda Insights.
“I expect India to continue maximizing Russian intake as long as its flows from Persian Gulf remain crimped,” she told Bloomberg.India, which ranks as the world’s third-largest oil importer, had earlier sourced only a small share of its crude from Russia. That shifted dramatically after the 2022 Russia-Ukraine war, when India emerged as the biggest seaborne buyer by taking advantage of steep discounts as other nations pulled back.
The situation changed again last year when US President Donald Trump stepped up pressure on India to curb these imports, imposing tariffs and eventually sanctioning Russia’s leading producers.
India’s Russian crude oil buys rise
Senior executives at major refining companies told Bloomberg they anticipate that a US waiver permitting imports of Russian oil will be extended ahead of its imminent expiry. However, even in the absence of such an extension, buying is unlikely to decline significantly due to limited alternative supply options, the report said.
“Our priority is to source the energy needed to meet our domestic demand,” Sujata Sharma, joint secretary in the oil ministry, said, when asked how critical US waivers were to India’s decision to import Russian oil. The choice “is driven by the technical commercial feasibility of the crude and the commercial sense it makes to our refiners,” she said, speaking with reporters during a briefing in New Delhi on Friday.According to data from intelligence firm Kpler, imports from Russia averaged 1.98 million barrels per day in March, the highest level since June 2023.
While the figure has moderated to 1.57 million barrels per day so far in April, this decline is largely attributed to maintenance shutdowns at Nayara Energy’s 400,000 barrel-per-day refinery, which primarily processes Russian crude. Executives expect volumes to rebound from next month.Recent developments have once again altered the dynamics. Military action by the US and Israel on Iran, followed by the shutdown of the Strait of Hormuz, has reshaped supply considerations.
While Washington is keen to keep oil prices in check, India has moved quickly to secure adequate supplies. A waiver permitting the purchase of Russian oil was first granted in early March and has since been expanded and prolonged.
Following the initial waiver, India procured roughly 60 million barrels scheduled for delivery this month, the Bloomberg report said.Shipments of Russian crude had accumulated at sea in the latter part of last year as Indian buyers held back, wary of potential backlash and tariff measures from Washington. According to Vortexa data, volumes on water climbed to about 155 million barrels by early January, up from roughly 93.2 million barrels around mid-year.
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That stockpile has since declined to nearly 100 million barrels, a level broadly comparable to what was seen a year ago, although it may include cargoes that have already been contracted.
