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Since the Russian invasion of Ukraine, India has become one of the largest buyers of Russian oil, with imports now accounting for 40% of its total oil purchases—up from 10% in 2021.
The surge in Russian oil imports began in the latter half of 2022, driven by discounted prices following the $60-per-barrel price cap imposed by the U.S. and its allies. India capitalized on this, establishing a $3 billion monthly trade for 1.85–1.95 million barrels per day, with much of the oil transported via shadow tankers.
However, new U.S. sanctions announced on January 10 have targeted these tankers and marine insurance providers, with nearly 40% of affected ships previously transporting Russian oil to India. This development has pushed India to explore alternative suppliers.
India’s government has reportedly engaged oil exporters from the Middle East, such as the UAE, Saudi Arabia, Kuwait, and Oman, leveraging its strong ties with these nations. Additionally, oil imports from Brazil and Guyana are increasing.
Indian Petroleum Minister Hardeep Singh Puri emphasized the country’s focus on expanding its crude oil sources from 27 to 39 countries to ensure energy security. While India plans to continue buying Russian oil, the volumes and logistics remain uncertain as the U.S. sanctions take effect. Further details may emerge at the upcoming India Energy Week in February.
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