Russian oil exports to India are set to rise in September, according to trading sources, even as New Delhi faces mounting pressure from the United States to curb purchases. The move comes amid fresh U.S. tariffs aimed at forcing India to scale back energy ties with Moscow and push Russia toward a peace deal in Ukraine.
India Emerges as Russia’s Largest Crude Buyer
Since Western sanctions were imposed after Russia’s invasion of Ukraine in 2022, India has become the biggest buyer of Russian oil. Discounted supplies have allowed Indian refiners to lower input costs, even as critics accuse New Delhi of profiteering from cheaper crude.
In August, India imported 1.5 million barrels per day (bpd) of Russian crude, steady with July but slightly below the 1.6 million bpd average in the first half of 2024, according to Vortexa data. The volumes represent about 1.5% of global oil supply, with Russian crude now accounting for nearly 40% of India’s oil needs.
Rising Tensions with the U.S.
The U.S. government has raised tariffs on Indian imports to 50% in retaliation for India’s continued purchases of Russian crude oil. American officials argue that these imports provide crucial revenue for Russia’s war in Ukraine. Indian officials, however, have pushed back, pointing out that the EU and U.S. still buy Russian goods worth billions.
September Imports to Climb
Trading sources said Indian refiners plan to increase Russian oil purchases in September by 1,50,000–300,000 bpd, or about 10–20% above August levels. Major refiners like Reliance Industries and Nayara Energy (partly Russian-owned) remain central to these purchases, although neither company commented publicly. The increase reflects Russia’s higher export availability, as refinery outages and Ukrainian drone attacks have disrupted domestic processing capacity, knocking out up to 17% of Russia’s refining output.
Price Advantage Remains a Key Driver
Russian exporters offered Urals crude for September loadings at discounts of $2–$3 per barrel against dated Brent, compared with just $1.50 in August. Analysts say this renewed discount is incentivizing Indian refiners to buy more, keeping Russian oil competitive despite sanctions. “Unless India issues a clear policy directive or trade economics shift significantly, Russian crude will remain a core part of its supply mix,” said Sumit Ritolia of Kpler.
Outlook: Balancing Energy Security and Diplomacy
For India, Russian oil remains an attractive option to support refinery runs and manage costs. But the growing friction with Washington highlights the delicate balancing act between energy security, trade relations, and geopolitical alignments. As reported by reuters.com, with September purchases set to rise, New Delhi appears determined to maintain access to discounted Russian crude, even as global scrutiny intensifies.
