India’s Oil Strategy Prevails: Imports of Russian Crude Continue Amid US Sanctions

India remains steadfast in its plans to receive shipments of Russian crude oil in the face of recent US sanctions targeting Russia’s shipping industry. Despite the blacklisting of at least three tankers with ties to Russia’s state-owned shipping giant Sovcomflot, these vessels are expected to deliver their cargoes to Indian refiners in the coming weeks.

This continued reliance on Russian oil by India is driven by the attractive discounts available since Russia’s invasion of Ukraine. Indian refiners have seized the opportunity to increase their purchases of Russian crude, capitalizing on the lower prices amidst the ongoing conflict.

The US sanctions, which were rolled out on Friday, aim to restrict Russia’s ability to sell its oil and are part of a broader effort by Western nations to undermine Russia’s war efforts. Specifically, the sanctions target 14 vessels owned by Sovcomflot, effectively limiting their access to global shipping and insurance markets.

Impact on India

Despite the intent of the sanctions to complicate Russia’s oil exports, the impact on India’s oil supply is expected to be minimal. The blacklisted tankers constitute only a small fraction of the larger fleet that routinely delivers Russian oil to India. Furthermore, Russia is adapting by exploring alternative shipping and insurance options to ensure its oil reaches willing buyers.

India’s Stance

India’s response to the Ukraine conflict has been one of neutrality, with the country abstaining from UN votes condemning Russia’s actions. While some analysts see the sanctions as a potential test of India’s relationships with both Russia and the US, India’s priority remains securing affordable energy for its growing economy. As such, it is likely that India will continue to navigate its energy needs while maintaining its pragmatic approach to geopolitical challenges.