India to Continue Purchasing Oil from Russia Despite US Threats

Strategic Insights -

India's energy decisions are driven by market availability and global conditions, rather than any pressure from the US or other countries. The country has been steadily increasing its imports of Russian crude, with Moscow becoming its largest supplier at one point. Despite US President Donald Trump's threats to impose tariffs on Indian goods if it continues to buy Russian oil, India has signaled that it will not be deterred.

Key Takeaways:

  • India's energy decisions are based on market availability and global conditions, not pressure from other countries.
  • India has been steadily increasing its imports of Russian crude, with Moscow becoming its largest supplier at one point.
  • In January 2022, India bought about 68,000 barrels of crude oil a day from Russia, which rose to 1.12 million barrels per day by June that year.
  • Russian supplies at one point made up nearly 40% of India's total oil imports.
  • Indian state refiners, including Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd, have not sought Russian crude in the past week or so, due to lower Russian exports and steady demand.
  • India consumes around 5.5 million barrels of oil a day, importing roughly 88% of its needs.
  • The country's energy imports have shifted sharply towards Russian supplies after the invasion of Ukraine in February 2022, with India taking advantage of steep discounts as Western nations turned away from Moscow's energy exports.

Statistics:

  • India imported 68,000 barrels of Russian crude per day in January 2022.
  • By June 2022, this had risen to 1.12 million barrels per day.
  • In May 2023, India imported 2.15 million barrels of Russian crude per day.
  • Russian supplies at one point made up nearly 40% of India's total oil imports.
  • India imports around 88% of its oil needs.
  • The country consumes around 5.5 million barrels of oil a day.

Sources:

  • Press Trust of India, citing data from analytics firm Kpler
  • Reuters news agency
  • Indian Oil Corp
  • Hindustan Petroleum Corp
  • Bharat Petroleum Corp
  • Mangalore Refinery Petrochemical Ltd
  • US President Donald Trump's statement to reporters