India says Russian oil imports remain driven by pricing, not U.S. pressure

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Highlights

Oil Minister Hardeep Singh Puri states India faces no U.S. pressure on Russian oil and bases imports strictly on discounts and supply economics.
Russian crude's share in India's imports surged post-Ukraine war but has declined as refiners pivot to discounted Middle Eastern oil and compete with China for Russian barrels.
India expands refining capacity to meet domestic and export demand, maintaining procurement flexibility and a balanced mix between Russian and Gulf crude.

Import strategy shaped by discounts and supply flows

As reported by Reuters, Oil Minister Hardeep Singh Puri says India has not come under pressure from the U.S. to reduce imports of Russian crude. Speaking at an industry event in Goa on Tuesday, he says buying decisions are tied to discounts and comparative pricing against other crude grades.

Puri says India was sourcing just 0.2% of its oil imports from Russia before the war in Ukraine, but those purchases surged after the conflict began because Russian barrels were available at lower prices. He adds that Russian imports have recently declined as Indian refiners buy more Gulf oil offered at a discount.

The minister also says Middle Eastern supplies are increasing as the region ships out more cargoes. His remarks align with ship-tracking data showing India's imports of Middle Eastern crude rose in September to pre-war levels while refiners cut back on Russian purchases amid strong competition from China.

Refining expansion supports domestic and export demand

Puri says India is expanding its refining capacity to help meet growing local fuel demand and fulfil export commitments. The capacity buildout points to a broader strategy of preserving sourcing flexibility while processing a wider mix of imported crude.

The latest comments underscore how India's crude procurement remains commercially driven despite geopolitical scrutiny of Russian energy trade. For the refining sector, the shift suggests buyers are likely to keep balancing Russian and Gulf supplies according to freight economics, discounts and product market opportunities.

In our earlier article on the WTO’s warning about war-driven trade disruptions, we noted that conflicts in Ukraine and the Middle East are prompting companies to redesign supply chains and shipping routes to improve resilience, even at higher cost. The WTO expects Middle East trade volumes to remain under pressure in 2024 and suggested some of these shifts could persist beyond the current conflicts as businesses diversify away from chokepoints and future shocks.

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