As global tensions rise over Russia’s war in Ukraine, India finds itself in the crosshairs of Western criticism for continuing to import discounted Russian crude. Despite U.S. tariffs and mounting diplomatic pressure, New Delhi has made it clear: Russian oil is here to stay in India’s energy basket.
The reason? It’s not ideology, but a mix of economic pragmatism, strategic autonomy, and energy security.
Why Russian Oil Still Flows to India
1. Economic Advantage
Russian crude often comes at $25–30 per barrel cheaper than Brent, saving Indian refiners billions. These savings help:
Keep domestic fuel inflation in check.
Support India’s booming demand for petrol, diesel, and aviation fuel.
Enable refiners to export fuels like diesel profitably to markets such as Europe.
2. Energy Security First
India imports over 85% of its crude oil. Having Russia as a top supplier (now over 35% of total imports, up from just 2% in 2021) ensures supply diversification and cushions the economy against global supply shocks.
3. Strategic Autonomy
India has long followed a principle of non-alignment in geopolitics. By continuing Russian imports despite U.S. sanctions, New Delhi signals that its policies are dictated by national interest, not global pressure.
Importantly, there is no international law banning Russian crude, making India’s position legally sound.
4. Managing Inflation & Growth
Cheap Russian oil has directly contributed to stabilizing domestic inflation, reducing the current account deficit, and supporting GDP growth. By controlling fuel costs, India shields households and industries alike.
5. Defying Trade War Pressures
The U.S. has expressed “disappointment” and even retaliated with 50% tariffs on Indian exports. Still, Finance Minister Nirmala Sitharaman emphasized that India’s decisions are driven by economics, not geopolitics—a message underscoring India’s resilience in the face of Western pushback.
India’s Role in the Global Energy Market
Interestingly, India’s stance has created a new role in the energy value chain:
Refiners import discounted Russian oil.
They process it and export diesel, petrol, and jet fuel to Europe and Asia.
This has positioned India as a key global supplier, especially after the EU banned Russian-origin refined fuels.
Risks and Challenges Ahead
Geopolitical Pressure – With U.S. tariffs already in play, further restrictions may strain trade relations.
Volatility – If discounts narrow or sanctions tighten, economic gains may reduce.
Diplomatic Balancing – India must walk a fine line, balancing relations with Russia, the U.S., and Europe simultaneously.
FAQs
Q1: Why does India continue to buy Russian oil despite U.S. criticism?
Because it is cheap, legally allowed, and necessary for India’s energy and inflation management.
Q2: How much Russian oil does India import today?
Russia now accounts for over 35% of India’s crude imports, making it the largest supplier.
Q3: Is India breaking any laws by buying Russian crude?
No. International sanctions do not ban the purchase of Russian crude; India’s imports comply with existing norms.
Q4: How does this help India’s economy?
Discounted oil saves billions, lowers domestic fuel inflation, and strengthens GDP growth.
Q5: Does this affect India’s ties with the U.S.?
Yes, it creates friction. But India emphasizes strategic autonomy and insists on pursuing policies that serve its own interests first.
Conclusion
India’s decision to stick with Russian oil is neither a political gamble nor a defiance of the West. It’s a calculated strategy balancing energy security, economic growth, and sovereign decision-making. As trade wars heat up, India’s stand reflects a broader shift: a rising power determined to chart its own course in a multipolar world.
Published on : 6th September
Published by : SMITA
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