India Bought $5.14 Billion Russian Oil In June Despite Pressure. Here's Why

Even as several buyers continue to stay away from Russian crude because of Western sanctions and geopolitical risks, Indian refiners are stepping in with record purchases. The buying spree is giving Moscow a reliable market for its oil while helping Indian companies secure cheaper supplies.

More than 2.3 million barrels of Russian crude -- worth $5.14 billion -- reached Indian ports in June, and July shipments are expected to remain close to those levels, according to a Bloomberg report. The surge comes at a time when Russia is looking to redirect exports after losing a large part of its European market.

Why India Is Buying More Russian Oil

The biggest reason remains simple: price.

Russian crude continues to trade at a discount to several competing grades, making it an attractive option for Indian refiners. Lower feedstock costs help refiners improve margins while keeping fuel supplies stable in one of the world's fastest-growing energy markets. 

The latest jump in imports has also been driven by supply disruptions in the Middle East due to the Iran war. Tensions in the region have affected shipping routes and reduced the availability of Gulf crude. As a result, Indian refiners have increased purchases not just from Russia but also from Latin American producers to diversify supplies. Meanwhile, Middle East imports to India fell sharply in the April-June quarter.  

In June alone, Russian crude accounted for roughly half of India's total oil imports, reinforcing Moscow's position as New Delhi's largest supplier. This comes as Brent crude oil has climbed above $90 per barrel amid further escalation in US-Iran tensions. 

A Lifeline For Russian Exporters

India's appetite for discounted crude has become increasingly important for Russian exporters. Since Europe imposed sanctions following the Ukraine war, Russia has had to rely heavily on Asian buyers. While India imported very little Russian oil before 2022, the country emerged as one of Moscow's biggest customers.

India imports from Russia
Photo Credit: Trading Economics

For Russia, steady demand from Indian refiners has helped keep export volumes high despite restrictions on Western shipping, insurance and financial services. 

What About US Sanctions?

Questions over sanctions continue to hover over Russian oil trade, but Indian officials have repeatedly maintained that the country's purchases are driven by commercial considerations.

Earlier this year, a temporary US waiver allowed certain Russian crude shipments to continue. Even after that waiver expired, India indicated that its procurement strategy would remain focused on energy security, competitive pricing and availability of supplies rather than political developments. 

Industry observers say India's diversified sourcing strategy, combined with adequate crude inventories, has reduced concerns over supply disruptions. 

What It Means For India?

For Indian refiners, Russian crude has become more than just a source of cheaper oil.

It offers protection against volatile global markets, especially when geopolitical tensions threaten traditional supply routes. As long as Russian oil remains available at attractive discounts and alternative supplies remain uncertain, India is likely to continue buying large volumes -- even as global politics around energy trade become more complicated.