‘Whatever waiver or no waiver, it will not affect supply’ says India on Russian oil flow

New Delhi: India has maintained that its crude oil imports from Russia will continue regardless of US sanctions waivers, with a senior petroleum ministry official stating on Monday that purchases are guided by commercial viability and energy security requirements.

‘Purchases continue before, during and after waivers’

Speaking at a media briefing, Sujata Sharma, Joint Secretary in the petroleum ministry, said India’s procurement from Russia has remained consistent across different phases of US policy measures.

“Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing from Russia earlier... before waiver also, during waiver also, and now also,” Sharma told reporters.

She further explained that India’s crude import strategy is primarily influenced by pricing considerations and the availability of sufficient supply in global markets.

“It is basically the commercial sense which should be there for us to purchase,” she said, adding that there was no shortage of crude oil and that adequate volumes had already been secured through long-term arrangements.

Expiry of US waiver on Russian oil trade

A temporary waiver issued by the United States, which allowed the sale and delivery of Russian seaborne crude, expired on May 16. This marked the second instance in which Washington allowed the relief measure to lapse without confirming an extension.

The general licence had initially been issued by the US Treasury Department in mid-March and was later extended in April. It was intended to reduce pressure on global energy markets following the US-Israeli war against Iran, which triggered what was described as the largest-ever oil supply disruption.

Sharma noted, “Whatever waiver or no waiver, it (availability) will not affect,” indicating that India does not expect supply continuity to be impacted by the lapse.

Russian oil’s role in India’s import basket

Since 2022, discounted Russian crude has become a central component of India’s oil import portfolio after Moscow’s invasion of Ukraine led to sweeping Western sanctions and disruption of Russia’s traditional export routes.

India, which is the world’s third-largest importer and consumer of crude oil, significantly increased its Russian oil purchases to benefit from lower prices. This helped domestic refiners manage elevated global energy costs.

While the United States and European countries imposed extensive sanctions on Russia following its February 2022 invasion of Ukraine, Russian crude itself was not directly sanctioned.

Sanctions, compliance and supply channels

In recent months, the United States has imposed sanctions on selected Russian entities, including major crude suppliers such as Rosneft and Lukoil, along with vessels and financial intermediaries. However, Russian oil has remained outside the sanctions list, allowing it to continue as a major supplier for India.

Indian procurement has continued with strict compliance measures, ensuring no involvement of sanctioned sellers or intermediaries, use of non-sanctioned vessels, and adherence to approved financial, insurance and trading channels.

This framework led to a brief moderation in imports last year. However, the reintroduction of waivers prompted Indian refiners to increase purchases once again.

Import volumes near record levels

Russian oil imports into India are projected to average close to 1.9 million barrels per day in May, according to data from Kpler. This figure is near record levels and includes shipments that were covered under the now-expired temporary US sanctions waiver.

Market outlook and industry assessment

Despite Brent crude prices remaining more than 50 per cent higher than pre-war levels, India’s reliance on discounted Russian oil has continued as part of its strategy to manage exposure to global price volatility.

Industry analysts suggest that India is unlikely to significantly reduce its dependence on Russian crude in the near term. Instead, they expect tighter documentation and enhanced screening processes rather than a fundamental shift in sourcing strategy.

With agency inputs