Following the Iran-Israel conflict in the Middle East and the disruption of oil supply chains, India has once again turned to Russia. According to a Bloomberg report, India is planning to increase its crude oil purchases from Russia to meet its oil needs. Oil supplies through the Strait of Hormuz have virtually halted in recent days, prompting officials from government refineries and the Petroleum Ministry to hold an emergency meeting in Delhi to explore alternatives. India is preparing to purchase Russian oil tankers stationed at sea. According to the report, India is considering purchasing Russian oil cargoes currently located near the Indian Ocean or in Asian waters. According to data, approximately 9.5 million barrels of Russian crude oil are currently loaded on tankers and waiting around Asian countries. In the event of a supply shortage, India could quickly access these tankers, reducing both transportation time and costs. Why is Russian oil important to India? Cheaper option: Russia offers oil to India at a discount to benchmark prices. Supply Security: When tensions arise in the Middle East, supplies from the Strait of Hormuz are disrupted, making Russia a safe option. Impact on the Economy: Cheap oil keeps petrol and diesel prices stable and inflation under control. Russian oil purchases reached a record low in February. Due to US pressure and tightening sanctions, India had reduced its oil purchases from Russia in the past few months. In February, India purchased only 1 million barrels of oil per day from Russia, the lowest level since September 2022. However, now, given the war situation in the Middle East and the shortage of crude oil in the global market, India has indicated a change in its strategy. The US had imposed an additional tariff on oil purchases from Russia. Last month, an interim trade agreement was discussed between India and the US. This included reducing the tariff on India from 50% to 18%. In fact, half of this 50% tariff was a ‘punitive fee’ for countries that were purchasing oil from Russia. US President Donald Trump lifted the 25% tariff imposed on India through an executive order. Trump claimed he granted this exemption because India had agreed to stop buying oil from Russia. However, India has never publicly acknowledged such a commitment. Russia has also stated that it sees no reason for India’s stance to change. The US Supreme Court struck down the Trump tariffs, calling them unconstitutional. Recently, the US Supreme Court struck down the tariffs imposed by President Trump on several countries, calling them unconstitutional. Following this, the Trump administration decided to impose a 15% tariff on imports into the US, the legal maximum. India’s Oil Ministry and Foreign Ministry are now negotiating with the US to ensure India does not again face punitive tariffs when purchasing oil from Russia. India is the third-largest buyer of Russian oil. In December 2025, India ranked third in terms of oil purchases from Russia, with Turkey becoming the second-largest buyer. Turkey purchased 2.6 billion euros worth of oil. India purchased 2.3 billion euros (approximately €23,000 crore) of oil from Russia in December. In November, India purchased 3.3 billion euros (₹34,700 crore) worth of oil. China remains the largest buyer, purchasing 6 billion euros (approximately €63,100 crore) of oil from Russia in December. Reliance Industries was the main reason for India’s reduced purchases. Reliance’s Jamnagar refinery reduced its oil purchases from Russia by nearly half. Previously, Reliance used to source its entire supply from the Russian company Rosneft, but due to fears of US sanctions, companies are now purchasing less oil from Russia. In addition to Reliance, state-owned oil companies also reduced their oil purchases from Russia by about 15% in December. Also read this news… The Strait of Hormuz will not be closed, but petrol and diesel may become more expensive: prices may increase by ₹4-5; gold expected to rise by ₹30,000; Impact of the US-Iran War: Iran’s Foreign Minister Abbas Araghchi has stated that there is no intention to close the Strait of Hormuz at this time. A day before, when Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed in a US attack, there were fears that Iran might close the Strait of Hormuz. If the Strait of Hormuz were to close, crude oil prices could rise from $70 per barrel to $120 per barrel. This could impact petrol and diesel prices in India. However, experts still believe that the risk of a rise in crude oil prices remains. Read the full story…
