Russia may divert around 9.5 million barrels of crude oil to India as supply disruptions intensify following the near-closure of the Strait of Hormuz.
India, which imports about 90% of its crude needs, is exploring alternatives amid escalating geopolitical tensions in West Asia.
Any increase in Russian imports could complicate ongoing India–US trade negotiations, even as Moscow signals readiness to supply both oil and LNG.
Russia Offers Oil Lifeline to India Amid West Asia Supply Crisis
Move comes as the near-closure of the Strait of Hormuz disrupts global oil flows and raises concerns over India’s energy security
Summary
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Russia is considering diverting oil to India to offset the supply chain disruption caused by geopolitical escalation in West Asia, Reuters reported. According to the report, citing an industry source, about 9.5 million barrels of Russian crude in vessels in Indian waters could arrive within weeks.
The near-complete closure of the Strait of Hormuz, following the combined military strike by the US and Israel, has rattled traders across the world. The Strait, which accounts for about 20% of global oil trade, has compelled India to look for alternative sources, the report said.
Earlier last month, the US announced the conclusion of the first phase of the India–US interim trade agreement (ITA), with Washington claiming that New Delhi had agreed to halt crude oil imports from Moscow. Indian officials neither confirmed nor denied the US claim. However, over the past year, India has reduced its dependence on Russian oil, with total crude imports falling to a three-year low in December.
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With India largely seeking alternatives in West Asia, the escalation in the region has put the country in a difficult position. A potential shift to the Americas would be significantly more expensive compared with Russian or West Asian imports due to longer shipping routes and higher freight charges.
India relies heavily on crude imports, with almost 90% of its daily requirement met through imports. According to the report, sources said Russia was ready to help India meet up to 40–50% of its crude requirements. Indian refiners are in touch with Russian crude traders. However, any increase in imports from Moscow would likely require government guidance, as talks for the next phase of the ITA and a broader Bilateral Trade Agreement (BTA) with the US are ongoing.
India has reiterated that crude imports are a matter of national interest, adding that its strategy to diversify supply chains will depend on market conditions and evolving international dynamics.
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More importantly, the report said Russia has also agreed to sell liquefied natural gas (LNG) to India after production from top supplier Qatar was halted. Unlike crude stockpiles, which can last up to 60 days, India does not maintain similar reserves of LNG or liquefied petroleum gas (LPG).
As one of the largest energy consumers in Asia, India is more exposed to supply chain shocks stemming from geopolitical escalation in West Asia than China.
However, efforts to de-escalate the situation are continuing, with US President Donald Trump on Tuesday saying the US Navy could escort oil tankers through the Strait of Hormuz. He also ordered the US International Development Finance Corporation to provide political risk insurance and guarantees for shipping in the Gulf.