India’s crude oil imports from Russia have scaled a new peak, reaching over 2.3 million barrels per day (bpd) in June, according to energy intelligence provider Kpler . This represents a 3% increase from the previous month and marks the highest volume of Russian oil ever purchased by India in a single month .
With this record-breaking surge, Russian crude now accounts for more than half of India’s crude imports, underscoring Moscow’s position as the country’s largest and most reliable oil supplier .
Strategic Discounts Driving Demand
The surge is a direct consequence of India’s strategic energy policy. Since the West imposed sanctions on Russian energy following the invasion of Ukraine, Moscow has offered its crude at a significant discount to international benchmarks . India, as the world’s third-largest oil importer, has seized upon this opportunity, using the cheaper fuel to manage its current account deficit and keep inflation in check .
Russia’s share in India’s import basket has risen from a negligible 0.2% before the Ukraine war to over 40% at its peak, with current levels hovering between 40% and 50% . The financial benefit has been immense, with India reportedly saving over $7 billion in the first year of the policy alone .
The Logistics Advantage: Baltic Ports Recover
The surge in June was partly enabled by a recovery in shipments from western Russian ports in the Baltic Sea. Loadings from these ports, which had been hit by recent drone attacks, rebounded in June, adding to the supply from the Far East .
Last month, Russia supplied India with 1.5 million bpd via the Baltic and around 0.8 million bpd via the Far East . In contrast, India’s combined imports from its other major suppliers—Iraq, Saudi Arabia, and the UAE—amounted to just over 1.6 million bpd in May .
Impact on Global Alliances
While India’s voracious appetite for Russian crude has been a geopolitical point of contention with the US and its allies, New Delhi has consistently defended its position, stating that it must prioritize its energy security and ensure affordable fuel for its citizens . Following the signing of the US-Iran peace deal on Tuesday, the Biden administration is likely to ramp up pressure on India to cut down its Russian oil imports by making cheaper Iranian and Venezuelan oil available in the market .
However, Indian officials have suggested that as long as the discount holds and the logistics are not disrupted, Russian crude will remain the bedrock of India’s crude diet. This is because Russian oil is now deeply integrated into India’s refining and transportation system, making a sudden shift logistically and economically complex . India expects Russian crude to remain “top of the list,” with analysts predicting India will also resume imports from Iran and Venezuela as sanctions ease and shipping costs decline .
