India Raises Russian Oil Imports to 2 Million bpd in August, Ignoring US Pressure

India’s crude oil imports from Russia surged to 2 million barrels per day (bpd) in August, up from 1.6 million bpd in July—an increase that marks 38% of its total 5.2 million bpd oil intake, according to Kpler data. Despite escalating pressure from the US to curb Russian purchases, Indian refiners appear guided by economic logic rather than geopolitics. 

Shifting Oil Sources

The rebound in Russian supply came alongside reductions from other nations. Imports from Iraq dropped to 730,000 bpd, while volumes from Saudi Arabia slipped to 526,000 bpd. The US ranked fifth, contributing 264,000 bpd. 

Economic Priorities Over Policy Shifts

India’s refineries are prioritising cost-efficiency. Indian Oil Corporation (IOC) processed 22% of its crude from Russia during April–June. Meanwhile, Bharat Petroleum indicated that Russian oil discounts, though reduced to approximately $1.50 per barrel, remain sufficient to sustain a 30–35% share in its annual crude mix—unless new sanctions are imposed. 

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Discounts Narrow, But Remain Attractive

Since 2022, Russia’s share in India’s oil purchases has climbed sharply from nearly zero to an estimated 35–40% today. Even though price discounts have shrunk from earlier highs of $40 per barrel, the current $2 discount continues to make Russian crude competitive. 

Diversifying Supply Channels

To mitigate dependency risks, Indian refiners are exploring alternative sources such as oil from the US, West Africa, and Latin America. 

Conclusion

India’s decision to increase Russian crude imports reflects a strategy driven by economic pragmatism rather than political pressures. Despite narrower discounts and mounting external pushback, Russian oil remains a cost-effective option for Indian refiners. Unless supply constraints or policies change, the country appears set to continue its “business as usual” approach with Russian crude.