Why India Increased Russian Oil Imports, Easing Pressure on Moscow

Since the outbreak of the Ukrainian conflict, the US and its allies have urged countries to buy less Russian oil in order to punish Moscow for its aggression. Indian refiners have done the opposite, buying more Russian crude while the government looks into ways to protect domestic oil companies from sanctions.

As a result, Russia's volume has increased dramatically. India imported 819,000 barrels per day (bpd) in May, up from 277,000 bpd in April and 33,000 bpd the previous year. Russia has surpassed Saudi Arabia to become India's second-largest supplier, while Iraq remains the largest.

While the volume increase is well known, some of the methods by which India communicated its strategy on Russian oil purchases to key players and provided assurances to the companies involved have not been reported.

Since Moscow's incursion into Ukraine on February 24, European countries and the United States have imposed harsh sanctions on Russia. While New Delhi has called for an immediate cessation of hostilities in Ukraine, it has not explicitly condemned the invasion, which Russia has described as a "special military operation."

According to an Indian government official, India intends to continue purchasing Russian oil, which is currently available at a discount that is narrowing. "If India stops buying oil from Russia, the entire world will be chasing the same pieces of oil and that will further push up oil prices," he said.