India Defies US Sanctions, Boosts Russian Oil Imports
India remained the second-largest buyer of Russian crude oil in October, spending $2.9 billion despite US sanctions and tariffs. Imports rose 11% month-on-month, with both private and state-owned refiners increasing purchases. The Vadinar refinery, operating at 90% capacity, relied entirely on Russian crude, signaling India's strategic shift toward discounted Russian oil amid geopolitical pressure.
India has solidified its position as the second-largest buyer of Russian crude oil, trailing only China, even as the US intensifies sanctions on Russian energy exports and imposes steep tariffs on Indian imports. According to the Center for Research on Energy and Clean Air (CREA), India spent $2.9 billion on Russian crude in October, accounting for 81% of its fossil fuel purchases from Russia. Crude imports from Russia increased by 11% month-on-month, outpacing the broader 8% rise in total fossil fuel imports. Private refiners continue to dominate, but state-owned refineries nearly doubled their Russian crude volumes, indicating a strategic shift in India's energy policy. The Vadinar refinery in Gujarat, partially owned by Rosneft and under EU sanctions, operated at 90% capacity and sourced exclusively from Russia, with imports surging 32% in October. However, exports from Vadinar dropped to their lowest levels since May 2023, possibly reflecting a focus on domestic demand or operational adjustments. India's reliance on Russian oil is driven by affordability, as Western sanctions have forced Moscow to offer deep discounts. The US has responded with 50% tariffs on Indian imports, aiming to pressure India away from Russian oil, but these measures have not deterred New Delhi. India's energy strategy highlights its prioritization of national interests over geopolitical pressure, underscoring a broader trend toward a multipolar energy landscape. As long as global prices remain unstable and supply from other producers is less favorable, India is unlikely to reduce its dependence on Russian crude, making its approach a key feature of global energy politics.
