India will continue to buy cheap Russian oil, citing national interest despite western pressure

The majority of India’s oil imports come from the Middle East, with Iraq and Saudi Arabia being the top two suppliers. After the kingdom hiked the official selling price (OSP) to record highs for Asia, at least two Indian refiners plan to buy less Saudi oil in May than normal. Saudi Aramco, the world’s largest oil exporter, has boosted crude prices for all areas, with prices in Asia reaching new highs.

Rising crude prices struck India hard, the world’s third-largest oil importer and user, with pump prices in several states reaching all-time highs. To fend off US pressure, India’s finance minister, Nirmala Sitharaman, has stated unequivocally that India will continue to import crude oil from Russia in the name of national interest.

While India imports 80% of its crude oil, it only bought 12 million barrels from Russia in 2021, accounting for only 2% of total imports and less than its own domestic output. Imports from Middle Eastern nations, on the other hand, account for 52.7% of India’s total imports.

Russia has given India crude oil at a steep discount of $35 per barrel compared to pre-war rates. According to Reuters’ calculations, Indian refiners have purchased at least 16 million barrels of cheaper Russian oil for May loading on a delivered basis. Sources state India’s Bharat Petroleum Corp Ltd purchased 2 million barrels of Russian Urals from broker Trafigura for loading in May.

President Volodymyr Zelensky of Ukraine has urged Western leaders to rapidly agree on a Russian oil embargo. He claimed that their inability to do so is costing Ukrainians their lives.

The United States, the United Kingdom, Canada, and Australia have all banned the import of any oil from Russia. The EU, which has 27 member nations, buys 40 percent of its gas and 30 percent of its crude oil from Russia. That makes them heavily dependent on Russia for energy.

For many Western countries, implementing energy restrictions on Russia has been easier said than done. India, too, is just concerned with its own interests.

Current buyers of Russian crude include India’s Bharat Petroleum, Hindustan Petroleum, Indian Oil Corp, Mangalore Refinery and Petrochemicals, Nayara Energy; Hellenic Petroleum (Greece), ISAB (Italy), Leuna (Germany), MIRO (Germany), PCK Schwedt (Germany), MOL (Hungary), Neftochim Burgas (Bulgaria), Pertamina (Indonesia), Sinopec (China) and PKN Orlen (Poland).