India Defies US Sanctions, Continues Purchasing Russian Crude Oil

India’s continued procurement of Russian crude oil persists even after the expiration of the US sanctions waiver. Sujata Sharma, Joint Secretary at the Ministry of Petroleum & Natural Gas, reaffirmed that India’s decisions are driven by commercial viability rather than geopolitical considerations. The country has been buying Russian crude both before and during the waiver, which has now expired. As of May 2026, India’s imports of Russian crude are reported to be around 1.9-2 million barrels per day, reflective of a strategic shift in sourcing to maintain energy security amidst global supply chain fragility.

This situation has significant implications for both the common citizen and the market. Given that crude oil prices continue to rise, the petrol and diesel price hikes of ₹3 per litre have helped reduce losses for public sector oil marketing companies (OMCs) from ₹1,000 crore per day to about ₹750 crore. However, the rising retail prices may burden consumers, leading to higher transportation and commodity costs. The overall stabilization of crude flows from Russia, despite geopolitical tensions, helps mitigate concerns of supply shortages but raises questions about the long-term sustainability of such crude sourcing as the global dynamics shift.

Looking ahead, the central government and the RBI must navigate these complexities to ensure energy security while managing domestic inflation. Although Sharma mentioned that a bailout package for OMCs is not currently a priority, ongoing monitoring of the international oil landscape and strategic planning is crucial. The risk associated with reliance on Russian crude, in terms of market perception and supplier diversification, suggests a pressing need for the government to bolster its domestic energy policies and explore alternative energy sources to enhance stability and sustainability in India’s energy portfolio.