Media: India ramps up Russian oil buying as sanctions threat fades

Indian refiners are expected to maintain high levels of Russian crude imports through the rest of the year, driven by constrained Middle Eastern supply and easing concerns over potential US sanctions, according to industry executives.

Refiners have ramped up purchases over the past two months and anticipate continued buying at current levels, even as a US waiver permitting imports of Russian oil nears expiry, Bloomberg reports.

Executives said they expect the waiver to be extended, but added that volumes are unlikely to decline significantly even without it due to limited alternative supply options.

“Our priority is to source the energy needed to meet our domestic demand,” Sujata Sharma, joint secretary in the oil ministry, said, when asked how critical US waivers were to India’s decision to import Russian oil. The choice “is driven by the technical commercial feasibility of the crude and the commercial sense it makes to our refiners,” she said, speaking with reporters during a briefing in New Delhi on Friday.

Imports from Russia averaged 1.98 million barrels per day in March, the highest level since June 2023, according to data from analytics firm Kpler. Flows eased to 1.57 million barrels per day in April on a month-to-date basis, largely due to maintenance at Nayara Energy’s 400,000-barrel-per-day refinery, which primarily processes Russian crude. Volumes are expected to rebound from next month, executives said.

“India is grabbing all the Russian crude it can get its hands on,” said Vandana Hari, founder of Singapore consultancy Vanda Insights. “I expect India to continue maximizing Russian intake as long as its flows from Persian Gulf remain crimped.”

India, the world’s third-largest oil importer, sharply increased purchases of discounted Russian crude following Moscow’s 2022 invasion of Ukraine, becoming the largest seaborne buyer as Western countries reduced imports. Buying slowed last year amid pressure from US President Donald Trump, including tariffs and sanctions targeting major Russian producers.

Market dynamics have shifted again following US and Israeli strikes on Iran and the subsequent closure of the Strait of Hormuz, tightening global supply. Washington has sought to contain oil prices, while India has moved to secure sufficient imports to meet domestic demand.

After the initial waiver was introduced in early March, India purchased around 60 million barrels of Russian crude for April delivery.

Russian oil volumes held in transit have also declined as Indian demand picked up. Cargoes on water, which had surged to about 155 million barrels in early January, have fallen to around 100 million barrels, according to Vortexa data, closer to levels seen a year ago.

The US Treasury has also granted a temporary waiver for seaborne Iranian oil, and India has indicated it may consider such supplies. However, refiners report limited success in securing alternative cargoes, citing concerns over suppliers and intermediaries.

Since the onset of a six-week conflict in the Persian Gulf, India — which imports roughly 90% of its crude and relies heavily on shipments via Hormuz — has faced supply disruptions, rising prices and potential economic headwinds. The country has also encountered difficulties sourcing liquefied natural gas, even as Russia has offered discounted cargoes to Asian buyers.