Recent reports indicate that India has reduced its import costs by roughly $10.5 billion since April 2022, a result of increasing purchases of Russian crude. The Indian Express highlights that refiners in the country are benefiting from the discounted oil barrels, elevating Russia from a marginal supplier to New Delhi’s leading crude supplier.
As of May, Russia accounted for about 41 percent of India’s oil exports. Iraq emerged as the second-largest source, supplying about 21 percent, followed by Saudi Arabia at roughly 11 percent. This shift reflects strategic buyers’ responses to price incentives and the broader geopolitics shaping energy trade in the region.
There are ongoing discussions among state-owned Indian refiners regarding a long-term petroleum import agreement with Russia. A key topic in these negotiations is the preferred currency for settlements, a decision with wide implications for financial flows, currency risk, and the operational flexibility of Indian buyers.
Earlier disclosures outlined the revenue Russia has earned from selling oil and gas in a six-month window, illustrating how price, volume, and mix between oil and gas contribute to energy export earnings for the country. Analysts note that the evolving mix of suppliers to India is influenced by price dynamics, supply assurance, and the evolving global energy market.
Overall, the rising share of Russia in India’s oil portfolio underscores a pragmatic approach by Indian buyers to secure affordable energy while navigating the broader ramifications of sanctions, currency arrangements, and long-term supply security. The outcome of ongoing negotiations could redefine India’s sourcing strategy and have ripple effects for regional energy pricing, supplier diversification, and the efficiency of state-managed refiners in a market characterized by shifting risk and opportunity. This trend is closely watched by industry observers and policymakers alike, who seek to balance affordability with strategic resilience in a complex global energy landscape.
At its core, the data points to a period of adjustment where price relief, supplier reliability, and financial mechanics converge to shape India’s energy imports. As the country continues to reassess its energy partnerships, the evolving relationship with Russia stands as a central element in the broader narrative of India’s energy security and economic trajectory. The narrative remains dynamic, with each update offering new insights into how major buyers navigate a world of diverse suppliers and fluctuating prices.