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India has sharply increased its imports of Russian oil over the past few years. Before the Ukraine war in 2022, Russia supplied only a small share of India’s crude oil needs. After Western sanctions on Moscow, Russian oil started being sold at discounts, and India became one of the biggest buyers. At times, Russia has supplied more than a third of India’s total oil imports, replacing some shipments from the Middle East and Africa. The main reason for this increase is price. India is a country that imports more than 85% of its crude oil, so cheaper oil helps reduce the overall import bill and supports its refiners. Russian barrels, even with transport and insurance costs, often remain cheaper than oil from other regions. This benefits large private refiners as well as state-owned companies, and it helps control inflation at home. Another reason is strategy. India wants to diversify its energy sources so that it does not depend too heavily on one region. By buying more oil from Russia, it adds another supply line alongside long-term contracts with the Middle East. This also fits with India’s policy of maintaining independent decisions in foreign affairs, even when there is pressure from the United States or Europe to cut such imports. The increase has some challenges as well. India’s trade deficit with Russia has widened because oil imports far outweigh exports. There is also international criticism, and at times, measures like tariffs have been imposed on refined products made from Russian oil. Even so, the government argues that buying Russian crude is necessary for energy security and to keep prices stable for Indian consumers. Overall, India’s rising imports of Russian oil show a mix of economic need and geopolitical balancing. It allows the country to take advantage of lower costs while navigating global political pressures, ensuring that its energy requirements are met in a reliable and affordable way. Subscribe for more educational content and unlock knowledge every day with FactTechz!

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