New Delhi: India’s dependence on Russian crude has risen sharply in recent months, with Moscow’s share of supplies increasing from 23 percent in January to about 50 percent in June and July.
Russian crude imports were around 2.6-2.8 million barrels per day (mbpd) in June and July, with the traditional Middle East supplies through the Strait of Hormuz disrupted due to tension between the US and Iran.In the first half of August, imports from Russia were running at about 1.9 mbpd, and the figure is expected to rise to around 2.0-2.1 mbpd as more cargoes are accounted for by the end of the month.
The growing dependency on Russian crude raises a question – Is India becoming too dependent on one supplier for its oil?According to experts, the answer is not straightforward.While Russia has become India’s biggest crude supplier, experts say this is also part of a broader diversification of supplies from the Gulf. However, such a high concentration with one supplier does expose India to sanctions risk, shipping restrictions and possible disruptions at Russian export terminals.
Also read: India’s Russian crude imports approach pre-Trump sanction levels amid Hormuz disruptions & US ‘waiver’
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