Inbizzy, New Delhi, – India plans to increase its imports of Russian oil by 10–20% in September, defying rising US tariffs and growing international pressure. Analysts warn the move could have major implications for global oil supply, trade diplomacy, and energy security.
Discounted Russian Oil and Refinery Attacks
Russia has been forced to sell Urals crude at steeper discounts—USD 2–3 per barrel for September loadings—following Ukrainian drone strikes that knocked out up to 17% of its refining capacity. With limited domestic processing options, Russia is looking to Asian buyers to absorb the surplus supply.
India Resumes Purchases Despite Tariffs
India’s leading refiners, Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL), have resumed Russian oil purchases for September and October after a brief pause in July. The price discounts appear to outweigh the risks of US trade retaliation.
The US, under President Donald Trump, recently imposed 50% tariffs on several categories of Indian exports, citing concerns over India’s role in financing Moscow’s war in Ukraine through oil purchases.
Geopolitical Tensions and Double Standards
Washington has accused New Delhi of profiteering from discounted Russian oil, while Indian officials have criticized Western “double standards,” noting that both the EU and the US continue to import Russian goods worth billions of dollars.
India maintains its position that purchasing Russian oil is driven by economic necessity and energy security, rather than political alignment with Moscow.
Global Oil Market Impact
- India as Top Buyer: India imports around 1.5 million barrels per day of Russian oil, making up 40% of its crude needs and representing 1.5% of global oil supply.
- Risk to OPEC: Russia’s aggressive pricing strategy has eroded the OPEC market share in India, after years of dominance.
- Global Price Spike: Analysts warn that if India halts Russian oil purchases, global crude supply could shrink by 1 million barrels/day, triggering prices close to USD 100 per barrel.
India’s Strategic Autonomy in Energy Policy
India’s energy strategy reflects its longstanding policy of strategic autonomy—pursuing affordable energy supplies while resisting external pressure from Washington and European capitals. This approach signals that India’s economic priorities remain paramount despite rising global geopolitical friction.
Key Takeaways
| Factor | Details |
| Import Increase | +10–20% Russian oil in September |
| US Tariffs | 50% on Indian exports, linked to Russian oil purchases |
| India’s Stance | Economic pragmatism over geopolitical alignment |
| Global Impact | Potential supply cuts, oil prices near USD 100 per barrel |
| OPEC Market Share | Continues to decline as Russian oil gains traction in India |
India’s decision to boost Russian oil imports underscores the tension between economic imperatives and geopolitical alliances. As US tariffs escalate and Europe tightens price caps on Russian oil, global energy markets remain on edge, with Asia emerging as a critical battleground for energy security and supply chain stability.
