India reaffirmed that its energy strategy remains anchored in securing affordable fuel for its 1.4 billion citizens, following the United States’ sanctions on Russia’s major oil producers Rosneft and Lukoil. During a press briefing the spokesperson for the Ministry of External Affairs, Randhir Jaiswal, stressed that India will continue to base its oil-sourcing decisions on market dynamics and national interest.
Jaiswal stated that India is currently “studying the implications” of the US sanctions and that the country’s policy on energy sourcing is already well established. His comments reaffirmed India’s stance that its fuel procurement is guided by the need to keep supplies reliable and prices moderate.
India has been among the world’s largest buyers of Russian seaborne crude, importing approximately 1.7 million barrels per day during the first nine months of this year. Analysts note that two companies targeted by the US sanctions together supplied about 60 per cent of India’s Russian crude imports. The sanctions give buyers until 21 November to wind down new deals, posing a major challenge to India’s existing import architecture.
Refining firms in India are responding cautiously, with several state-run and private companies reviewing their Russian crude contracts. One major refiner declared that it has suspended further purchases from Russia in the wake of the sanctions while awaiting clearer guidelines. Refinery executives warn that while flows may not halt overnight, the options for replacing the Russian volumes are limited and more costly. Higher landed cost from alternative sources such as West Africa or the Middle East is expected to raise the import bill by about 2 per cent annually.
India’s approach appears to balance diplomatic pressures against its energy imperatives. While the US is pressing India to reduce dependence on Russian oil as part of broader geostrategic efforts, India’s public messaging emphasises energy security and affordability above alignment with foreign sanctions regimes. Jaiswal underlined that decisions will “naturally take into account the evolving global market,” making clear that New Delhi will not be swayed solely by external political demands.
Analysts say India is likely to attempt a gradual shift away from Russian crude, not because of an abrupt policy reversal but because substitution will be technically and economically difficult. The government faces the task of redirecting roughly 40 per cent of its crude from Russia to other suppliers without disrupting domestic fuel markets. One former CEO of an Indian refinery noted that achieving this “glide path” is critical to maintaining price stability for consumers while negotiating the complex diplomatic terrain.
Energy consultancy data shows that India has begun to diversify its import sources, with increased volumes from Colombia, Canada and the Middle East during the third quarter of this year. But the deeper challenge remains replacing cheap Russian-origin barrels which carried steep discounts. Above-market pricing for alternatives could lead to inflationary pressures and elevated import bills.
There is also a diplomatic dimension. India remains engaged with the US on a potential bilateral trade deal that could lower tariffs on Indian exports in return for policy adjustments including energy procurement. At the same time, India-Russia relations remain strong and multifaceted, covering defence, space, and technology cooperation — signalling that New Delhi does not view its partnership with Moscow purely through the lens of oil imports.
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