India to continue Russian oil imports despite US sanctions waiver expiry

India will continue importing Russian crude irrespective of US sanctions waivers, citing commercial viability and energy security concerns. Petroleum Ministry officials said supplies remain stable, while analysts expect tighter compliance checks instead of any major shift in India’s oil sourcing strategy

New Delhi: India has been purchasing Russian oil irrespective of US sanctions waivers and will continue to do so based on commercial viability and energy security needs, a senior Petroleum Ministry official said on Monday.

“Regarding the American waiver on Russia, I would like to emphasise that we have been purchasing oil from Russia earlier — before the waiver, during the waiver, and now as well,” Sujata Sharma, Joint Secretary in the Petroleum Ministry, told reporters at a media briefing.

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Sharma said India’s crude sourcing decisions were driven primarily by commercial considerations and supply availability.

“It is basically the commercial sense that should guide our purchases,” she said, adding that there was no shortage of crude supplies and that sufficient volumes had been secured through long-term arrangements.

A temporary US sanctions waiver allowing the sale and delivery of Russian seaborne crude expired on May 16, marking the second time Washington allowed the relief measure to lapse without clarity on an extension.

The general licence, first issued by the US Treasury Department in mid-March and extended in April, was intended to ease pressure on global energy markets after the US-Israel conflict with Iran triggered major oil supply disruptions.

“Whatever the waiver situation, availability will not be affected,” Sharma said.

Discounted Russian crude has become a major component of India’s oil import basket since 2022, when Moscow’s invasion of Ukraine triggered sweeping Western sanctions and disrupted Russia’s traditional export markets.

India, the world’s third-largest crude importer and consumer, sharply increased purchases of Russian oil to take advantage of lower prices, helping domestic refiners manage elevated global energy costs.

The US and European countries imposed sweeping sanctions on Russia following its February 2022 invasion of Ukraine, but Russian oil itself was never directly sanctioned.

In recent months, the US sanctioned certain Russian entities, including major crude suppliers such as Rosneft and Lukoil, along with vessels and financial channels. However, Russian oil remained outside the sanctions framework. This allowed Russia to continue as a key supplier for India, provided procurement complied with restrictions on sanctioned sellers or intermediaries, non-sanctioned vessels, and approved financial, insurance, and trading channels.

This led to a brief moderation in purchases last year, but the waivers prompted Indian refiners to step up purchases again.

Russian oil imports into India are expected to average nearly 1.9 million barrels per day in May, according to data from Kpler, close to record levels. The figures include shipments covered under a temporary US sanctions waiver that expired over the weekend.

The continued flow of Russian crude comes even as Brent prices remain more than 50 per cent above pre-war levels, reinforcing India’s push to secure cheaper supplies amid global market volatility.

Analysts said India is unlikely to move away from Russian crude in the near term. Instead, stricter documentation and tighter screening measures are expected rather than any structural shift in sourcing.