Indian refiners have purchased around 30 million barrels of Russian crude oil after the United States granted a waiver allowing the transactions, helping India address a sudden supply shortfall from West Asia, according to sources familiar with the deals.
India had been gradually reducing its imports of Russian oil over the past year due to pressure from Washington. To compensate, the country increased purchases from major Middle Eastern suppliers such as Saudi Arabia and Iraq. However, the escalating conflict in West Asia disrupted those supplies. The situation worsened after the Strait of Hormuz — a key shipping route linking the region’s oil producers to global markets — effectively shut down following US and Israeli strikes on Iran.
After the US waiver was issued late last week, Indian refiners quickly moved to secure available Russian cargoes in the spot market. Companies including Indian Oil and Reliance Industries reportedly bought large volumes of crude that had already been loaded onto vessels but had not yet been committed to buyers. Much of this oil was already positioned in Asian waters, making it easier to redirect shipments to India.
The Russian crude purchased includes several grades such as Urals, ESPO and Varandey. Traders said the cargoes were offered at premiums ranging from $2 to $8 per barrel above the London Dated Brent benchmark. Before the recent tensions in West Asia, Russian oil had typically traded at a discount to the same benchmark.
Of the total volume purchased, about 10 million barrels were bought by state-owned Indian Oil, while Reliance Industries acquired at least a similar amount, according to traders. Both companies did not immediately respond to requests for comment.
The US waiver applies to transactions involving Russian crude oil and petroleum products that were loaded onto vessels before March 5, provided the cargo is delivered to India and purchased by an Indian company. Following the waiver, several tankers that had previously been heading away from the region have reportedly changed course toward India. Among them are the vessels Maylo and Sarah, which had initially indicated Singapore as their destination before redirecting to Indian ports.
India, which historically imported limited volumes of Russian oil, significantly increased its purchases after Russia’s invasion of Ukraine in early 2022. The surge in imports drew criticism from Washington, which has sought to intensify pressure on Moscow. While Russian oil itself is not directly sanctioned, the US has imposed restrictions on some of Russia’s largest energy companies.
India’s imports of Russian crude reached a peak of more than 2 million barrels per day in mid-2024. However, shipments declined in recent months, averaging about 1.06 million barrels per day in February, according to data from energy analytics firm Kpler.
