India’s Reliance on Russian Oil
- India’s imports of Russian crude oil have surged significantly since the outbreak of the Russia-Ukraine war in February 2022.
- In March 2023, Russian oil accounted for 40% of India’s total crude oil imports, up from just 1% before the war.
- India’s two largest refiners, Reliance Industries and Nayara Energy (49% owned by Russia’s Rosneft), together account for 45% of all Russian crude imported by India since the invasion.
- India has emerged as a major hub for refining and re-exporting Russian oil to Europe and the US, helping Moscow circumvent Western sanctions.
- India’s heavy reliance on discounted Russian oil has allowed it to save an estimated $3.6 billion in the 10 months after the war began.
- However, there are signs that India’s ability to further increase its imports of Russian oil may be approaching a limit due to infrastructure and political constraints, as well as reduced Russian oil flows to Asia.
In summary, India has significantly increased its dependence on Russian oil since the Ukraine invasion, with Russian crude now accounting for 40% of its total imports. This has allowed India to benefit from discounted prices and offset the impact of high global oil prices. However, India’s ability to further ramp up Russian oil imports may be reaching a ceiling in the near term.
Reliance on Iranian Oil
- India’s imports of Russian crude oil have surged significantly since the Russia-Ukraine war, reaching 40% of India’s total crude imports as of March 2023.
- However, India’s ability to further increase its imports of Russian oil may be approaching a limit due to infrastructure and political constraints, as well as reduced Russian oil flows to Asia.
Reliance on Iraqi Oil
- Iraq is one of the top sources of crude oil for India, accounting for 16% of its total oil imports.
Reliance on Saudi Arabian Oil
- Saudi Arabia is India’s top supplier of crude oil, providing 17% of its total oil imports.1
- Saudi Arabia has sought to limit Iran’s efforts to increase its oil exports, including by banning carriers of Iranian crude from its waters and cutting oil prices to European customers.1
In summary, the data shows that India continues to rely heavily on oil imports, with Saudi Arabia, Iraq, and increasingly Russia being the top sources. While India has significantly increased its imports of Russian oil, its ability to further expand this may be constrained. The search results do not suggest any major shifts in India’s reliance on oil from Saudi Arabia or Iraq.
