India, which receives more than one third of its oil imports from Russia, is likely to be diverted to supply from the Middle East and Africa and other regions, if it is forced to cut Russian imports due to possible US punishment.
Why is India importing Russian oil?
India purchased Russian oil sold at a discount after Western countries banned Moscow and removed their supply on Ukraine’s attack in 2022.
Russia has become the top supplier in India, about 35% of the overall supply of India less than 2% before the war in Ukraine.
The global raw price prices rose by $ 137 per barrel due to lack of supply in view of the western leadership sanctions before stabilizing. Continuity Russian crude has reduced the cost of Indian refiners. India imports more than 85% of its oil needs.
How much Russian oil does India buy?
Trade data showed that the world’s third largest oil importer and consumer received about 1.75 million barrels of Russian oil in the first half of this year, showing up to 1% from a year ago, from business data.
While Indian state refiners buy Russian oil from traders, private refiner Naira Energy and Reliance Industries Limited, operator of the world’s largest refining complex, has long -term supply deals with Rosneft.
Why does Trump want India to cut Russian oil imports?
US President Donald Trump has said that he will increase the tariff charged on goods imported on imported from India, in view of the continuous purchase of New Delhi’s Russian oil. He has warned that countries buying Russian exports can face restrictions if Russia fails to reach a peace agreement with Ukraine.
New Delhi has opposed pressure, citing its long -term relationships with Russia and its economic needs.
However, the state’s state refiners have stopped to buy Russian oil.
What are the options of India if it cannot buy Russian oil?
Apart from Russia, India buys oil from Iraq – its top supplier before the war in Ukraine – Saudi Arabia – and after the United Arab Emirates.
Indian refiners mostly buy oil from Middle Eastern producers under annual deals with flexibility to request more supply every month. Since Trump’s warnings of sanctions, refiners have bought raw crude from the United States, Middle East, West Africa and Azerbaijan.
India has diversified its sources of supply to about 40 countries, saying Oil Minister Hardeep Singh Puri, saying that Guyana, Brazil and Canada are getting more supply in the market.
