Indian Refiners Turn to Russia for Crude Oil Amid Supply Disruptions in the Gulf

Amid the ongoing conflict between Iran and Israel, the closure of the Strait of Hormuz shipping route has disrupted oil supplies. As a result, India is expected to purchase around 30 million barrels of crude oil from Russia to compensate for the supply disruption. The claim was made in a report by Bloomberg. According to the report, major Indian companies including Indian Oil Corporation and Reliance Industries have signed agreements with Russia to secure crude oil shipments. The decision comes as energy supplies through the Gulf region face uncertainty due to escalating tensions. Recently, the United States reportedly said that India had been granted a 30-day waiver—valid until April 3—to purchase Russian oil shipments that were stranded at sea. However, Indian officials stated that the country does not depend on permission from any nation when it comes to purchasing crude oil. The report further stated that oil supplies passing through the Strait of Hormuz were affected following US and Israeli attacks on Iran. In response, Indian refiners secured Russian oil cargoes that were already in Asian waters but had not yet found buyers. Traders indicated that Indian Oil Corporation has purchased about 10 million barrels of crude oil, while Reliance Industries has acquired at least another 10 million barrels. The remaining shipments have reportedly been purchased by other Indian refining companies. Shipping data also shows that several large oil tankers, including the Russian vessels Milo oil tanker and Sarah oil tanker, which were originally headed toward Singapore, have now redirected their routes toward Indian ports. These ships reportedly changed their destinations shortly after the waiver announcement. This time, Russia is offering crude grades such as Urals, ESPO, and Varandey. In recent months, India had reduced its crude imports from Russia and instead increased purchases from Saudi Arabia and Iraq. Data shows that imports from Russia fell to about 1.06 million barrels per day in February, compared with more than 2 million barrels per day in mid-2024. However, due to the current crisis in the Middle East, India has once again turned to Russia to address potential energy shortages in the country.