Context:
Amid rising tensions in West Asia, including recent strikes on Iran, India has sharply increased its crude oil imports from Russia and the U.S. in June 2025. This reflects a strategic shift in India’s energy sourcing away from traditional West Asian suppliers.
Relevance: GS 3 (Energy Security, International Relations, Indian Economy)
- Surge in Russian Oil Imports:
India is set to import 2–2.2 million barrels/day of Russian crude in June—the highest in two years and exceeding combined West Asian imports. - Shift from West Asia:
Imports from traditional suppliers like Iraq, Saudi Arabia, UAE, and Kuwait have declined to about 2 million bpd due to regional instability. - Boost in U.S. Imports:
Crude imports from the U.S. jumped to 4.39 lakh bpd in June, up from 2.8 lakh bpd in May, indicating diversification beyond regional volatility zones. - Post-Ukraine Realignment:
After the 2022 Ukraine invasion, India capitalised on discounted Russian oil, raising its share from under 1% to over 40% of total imports. - Logistical Advantage:
Russian oil bypasses the volatile Strait of Hormuz, using alternative routes via the Suez Canal or Cape of Good Hope, offering strategic supply security. - Refining & Payment Flexibility:
Indian refiners have adapted technologically and financially to handle varied crude sources and navigate complex payment structures amid sanctions. - Diversification for Energy Security:
Growing reliance on Russia and entry of U.S., Latin American, and West African oil reflects India’s proactive hedging against geopolitical supply disruptions.
Conclusion:
- India’s evolving oil import strategy enhances energy security by diversifying sources and reducing dependence on geopolitically sensitive regions.
- Continued refining flexibility and strategic sourcing will be key to balancing cost, supply stability, and geopolitical risks.
