The US has been closely monitoring countries that could be dodging anti-Russian sanctions by purchasing petroleum products of Russian origin. India is one of the countries that has to withstand mounting pressure from Washington.
Despite the discontent from the White House, India is still actively involved in trade with Russia. The booming Asian economy has to seek other oil supply channels for its oil processing plants. As a result, India has to diversify supply chains for commodities because of tough economic sanctions against Russia. Nevertheless, Russia remains the key oil supplier to India. At the same time, India’s oil processing plants are shifting focus toward other suppliers.
According to estimates by Kpler, a provider of ship tracking analytics, India’s petroleum imports from Saudi Arabia ballooned by 22% in February from a month ago. Reliance Industries Ltd, a major private oil processing plant, purchased the lion’s share of crude oil. Analysts reckon that India’s oil processing plants need more Russian crude. However, India’s authorities have to compromise with the White House. They need to adjust commodity contracts to Washington’s rhetoric. At the same time, Russian oil costs $2–$4 cheaper per barrel than petroleum products from other countries.
Interestingly, Russian oil imports in India zoomed up two years ago thanks to lavish discounts. Russian oil supplies to India peaked in 2023. Oil contacts made by Indian buyers accounted for almost 50% of all seaborne deliveries from Russia. However, oil trade creaked under the strain due to a new package of anti-Russian sanctions.
