ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India’s Imports of Russian Crude Oil

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India increased its oil imports from Russia during a period of rising energy prices by taking advantage of cheap prices. Just 0.2% of India’s total oil imports were from Russia, prior to the Russia–Ukraine war. Presently, 10% of India’s total crude imports come from Russia. It is currently one of India’s top 10 crude oil suppliers. Since April 2023, India has increased its imports of Russian crude oil from all other sources by a factor of more than 50. The price of Russian Ural crude oil has decreased as certain international governments and firms have stopped relying on the nation’s energy exports as a result of the conflict with Ukraine. It can be said that Indian refiners took advantage of this situation and bought Russian crude oil at a discount of up to $30 per barrel. With over 7.3% of the market share for crude oil imports, the United States (US) in the recent past acted as a significant source of crude oil for India, accounting for nearly $13 billion in energy imports.

Since Russia invaded Ukraine in late February 2023, India has bought more Russian oil. Due to restrictions imposed on Iran, Russia supplies 25% of India’s energy. Due to sanctions, Russia is selling crude oil to India at a discount, and India plans to import 15 million barrels a year. India may pay a high price for its low crude oil prices. As major trading partners like the US and European Union can prohibit India’s import of certain products, it may affect its trade relations.

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