India’s energy strategy is once again under the global spotlight, as the country continues to expand its purchases of Russian crude oil despite mounting pressure and punitive tariffs from Washington. According to data reported by the Economic Times and analytics provider Kpler, India’s imports of Russian oil rose by 5.6% in August, reaching 1.6 million barrels per day (mbd). This increase occurred even as the country’s overall oil imports fell to a 10-month low of 4.5 mbd, reflecting weaker domestic demand.

The figures are striking. Russia now accounts for 37% of India’s crude oil imports, up from 33% just a month earlier. Before Russia’s invasion of Ukraine in February 2022, India’s share of Russian oil was negligible-barely 1% of total imports. In less than three years, Russia has become India’s largest crude supplier, reshaping New Delhi’s energy map and redefining its geopolitical balancing act.

The main driver behind India’s growing appetite for Russian oil is economics. Moscow has been offering crude at significant discounts compared to Middle Eastern suppliers. With India’s economy heavily reliant on imported energy-nearly 85% of its crude demand is met from abroad-cheaper Russian oil provides a lifeline for both government finances and domestic refiners.

Indian refiners have been particularly adept at turning discounted Russian crude into profitable exports. The refined products-diesel, jet fuel, and gasoline-are........

© Blitz