Russian crude accounted for 43.2% of India’s oil imports in June amid US pressure and looming tariff legislation.
India’s appetite for discounted Russian crude showed no signs of slowing, with imports hitting an 11-month high in June, even as Washington mulls harsh new trade penalties on countries doing business with Moscow.
According to tanker tracking data from Kpler, Indian refiners imported 2.08 million barrels per day of Russian oil last month, marking a 12.2% jump from May and the highest level since July 2024. Russian crude made up 43.2% of India’s total oil imports, surpassing the combined volumes from Saudi Arabia, Iraq, and the UAE, long-time pillars of India’s energy security.
The surge comes at a sensitive time. A proposed US bill, backed by Republican Senator Lindsey Graham, seeks to impose 500% tariffs on nations maintaining trade with Russia. The bill, reportedly supported by former President Donald Trump, aims to pressure Moscow into ending the war in Ukraine. India, alongside China, remains one of Russia’s top oil buyers.
India has expressed concerns about the bill through diplomatic channels. During a recent visit to Washington, External Affairs Minister S. Jaishankar said that Senator Graham was made “conversant” with India’s energy needs and stressed that decisions will be made when necessary. “We’ll cross the bridge when we come to it, if we come to it,” he remarked.
With around 88% of India’s oil demand met through imports, energy security remains a top priority. Since the West distanced itself from Russian oil following the Ukraine invasion in 2022, India has benefited from steep discounts on Russian crude. This shift turned Russia from a marginal player to India’s largest oil supplier and a key trading partner.
While the oil itself is not under sanctions, a $60 per barrel price cap, enforced by the US and its allies, restricts the use of Western shippers and insurers for Russian crude priced above that threshold. Still, Indian refiners have continued buying Russian oil, as long as pricing and logistics remain within permissible bounds.
If the US bill becomes law in its current form, Indian refiners may be forced to diversify their sourcing, raising costs and potentially complicating the ongoing India-US trade pact talks. For now, the industry is in wait-and-watch mode, keeping Russian oil barrels flowing even amid geopolitical uncertainty.
Source: NDTV
