Data Shows Indian Refiners Save Over $10.5 Billion by Purchasing Discounted Russian Oil

In a significant shift in trade dynamics, oil has surged to the forefront of the India-Russia relationship, previously a minor component of their bilateral trade. The catalyst for this change was the outbreak of the war in Ukraine, which dramatically altered the global energy landscape. During his recent visit to Moscow, Prime Minister Narendra Modi emphasized Russia’s crucial role in helping India secure fuel for its vast population amidst a global energy crisis. Modi highlighted that the India-Russia oil trade has contributed to the stability of global energy markets.

An analysis by The Indian Express, based on India’s official trade data, reveals that Indian refiners likely saved at least $10.5 billion in foreign exchange from April 2022 to May 2024 by increasing their purchases of discounted Russian crude oil. Following the February 2022 invasion of Ukraine, Western nations reduced their oil imports from Russia, prompting Moscow to offer significant discounts on its crude. Indian refiners seized this opportunity, dramatically increasing their intake of Russian oil. As a result, Russia has transitioned from a marginal player to India’s largest oil supplier, firmly positioning itself among India’s top trade partners.

The burgeoning oil trade between India and Russia underscores the shifting priorities and strategies in global energy markets in response to geopolitical events. This mutually beneficial arrangement not only underscores the deepening economic ties between Moscow and New Delhi but also highlights India’s pragmatic approach to securing energy resources amidst global uncertainties. As Russia emerges as a key player in India’s oil supply chain, the relationship is poised to further influence the stability and dynamics of global energy markets.