India Refuses to Back Down on Russian Oil Despite US Sanctions

India's purchases of discounted Russian crude oil show no signs of abating despite a 50% levy imposed by the US, highlighting the country's strategic priorities on energy security. While initial indications suggest a drop in imports from August, oil industry experts believe that Russian crude currently en route to India may still reach the country, potentially pushing imports back up. This persistence in buying Russian oil has led to a brewing standoff with the US, which has accused India of propping up Moscow's war effort in Ukraine.

Key Takeaways:

• India is buying around 1 million barrels per day (bpd) of Russian crude oil for August, around 40% lower than June and July's purchases.
• Several ships are on their way to Port Said, the gateway to the Suez Canal, which often end up in India, but their final destinations have not been declared.
• Oil industry experts suggest that arrivals in September and October could push August imports back up towards 1.7 million barrels a day.
• India's decision to continue buying Russian oil is driven by its commitment to energy security, with officials citing the need to safeguard against future disruptions.
• The US has imposed a 50% tariff on imported Russian crude, while China, the largest importer of Russian oil, faces no penalties.
• Indian External Affairs Minister S. Jaishankar dismissed the US argument as selective, pointing out that it has not applied the same measures to China.

Statistics:

• India's oil imports from Russia in June: 2.1 million barrels per day.
• India's oil imports from Russia in July: 1.6 million barrels per day.
• India's current oil imports from Russia: around 1 million barrels per day.
• Total US tariff on imported Russian crude: 50%.

Sources:

• Sumit Ritolia, lead research analyst at Kpler (no specific date mentioned in the source material).