India to keep buying Russian oil regardless of US sanctions waivers, says official

A senior official from India's Ministry of Petroleum and Natural Gas stated that India will continue purchasing Russian crude oil irrespective of whether US ...

What Happened

A senior official from India's Ministry of Petroleum and Natural Gas stated that India will continue purchasing Russian crude oil irrespective of whether US sanctions waivers are in force, with decisions governed by commercial viability and energy security considerations.
The official emphasised that India's energy procurement policy is sovereign in nature: the country has been buying Russian oil outside the waiver framework and will continue to do so.
Russian oil imports are expected to average approximately 1.9 million barrels per day (bpd) in May 2026, approaching record levels, driven partly by supply disruptions caused by the closure of the Strait of Hormuz.
Indian refiners have maintained compliance with applicable sanctions by routing purchases through non-sanctioned entities, using non-sanctioned vessels, and maintaining compliant financial and insurance channels.
The OFAC General License 134B, which had authorised certain deliveries of Russian-origin crude already loaded on vessels, lapsed on May 16, 2026, without renewal; India's policy position treats this as a non-factor for ongoing procurement decisions.

Static Topic Bridges

India's Hydrocarbon Import Dependence

India is the world's third-largest oil importer and consumer. Domestic crude production covers only around 13% of the country's needs, making India structurally dependent on imported hydrocarbons for about 87% of its crude oil requirement. The International Energy Agency projects India's oil demand will rise from 5.5 million bpd in 2024 to approximately 8 million bpd by 2035, with import dependency rising to around 92% over the same period.

India imports crude oil from over 40 countries, maintaining deliberate supplier diversification to reduce concentration risk.
Russian crude as a share of India's import basket rose to approximately 36% at its peak (FY 2024–25), settling to around 33% in FY 2025–26.
India's March 2026 Russian crude purchases reached approximately 2.06 million bpd — a 94% month-on-month increase, partly reflecting strategic stockpiling during supply disruptions.
Russian Urals crude typically trades at a 15–20% discount to Brent, providing significant savings for India's price-sensitive refining sector.

Connection to this news: The official's statement reflects India's structural compulsion: with nearly 87% import dependence and rising demand, maintaining access to discounted Russian crude is a policy imperative rather than a diplomatic choice.

US Extraterritorial Sanctions and the OFAC Waiver Mechanism

The United States imposes secondary sanctions on entities transacting with Russia's oil sector under the Ukraine-/Russia-related Sanctions programme administered by the Treasury Department's Office of Foreign Assets Control (OFAC). These sanctions — including restrictions on entities listed under Executive Orders related to Russia — apply extraterritorially, potentially exposing non-US entities to penalties.

General Licenses (GLs) are OFAC instruments that authorise categories of transactions that would otherwise be prohibited. GL 134B specifically authorised transactions "ordinarily incident and necessary to the sale, delivery, or offloading" of Russian-origin crude oil or petroleum products already loaded on vessels on or before April 17, 2026 — effective through May 16, 2026. The $60-per-barrel oil price cap, operative since December 2022, is a separate multilateral mechanism from the G7 and EU.

The G7 oil price cap on Russian crude was set at $60 per barrel in December 2022.
OFAC's GL 134B lapsed on May 16, 2026; it was the second lapse without extension.
India purchases Russian crude through non-sanctioned entities and shipping channels, reducing (though not eliminating) US sanctions exposure.
Secondary sanctions can affect access to US dollar clearing systems and US financial markets for non-compliant entities.

Connection to this news: India's explicit policy of buying Russian crude regardless of waiver status signals that New Delhi calculates the commercial benefit outweighs the secondary sanctions risk, particularly given current global supply tightness.

India's "Strategic Autonomy" in Foreign and Energy Policy

India's strategic autonomy doctrine holds that New Delhi should maintain freedom of action in its foreign and economic relationships, resisting alignment with any single power bloc. In energy policy, this translates into diversified sourcing, long-term supply agreements with multiple producers, and resistance to externally imposed procurement restrictions. India has historically invoked sovereignty over commercial decisions, especially in sectors directly affecting domestic inflation and industrial competitiveness.

India imports crude from West Asia (Saudi Arabia, Iraq, UAE), Russia, the United States, and Africa, among others.
The Hydrocarbon Vision 2030 and the National Energy Policy frameworks emphasise affordability, access, and efficiency as the three pillars of energy security.
India joined the International Energy Agency (IEA) as an Association country in 2017; full membership requires meeting strategic petroleum reserve norms.
India's strategic petroleum reserve capacity stands at approximately 5.33 million metric tonnes across Visakhapatnam, Mangalore, and Padur facilities.

Connection to this news: The petroleum ministry's unambiguous statement on Russian oil procurement is a direct application of strategic autonomy — asserting the primacy of domestic energy security calculus over alignment with US sanctions policy.

Key Facts & Data

India imports approximately 87% of its crude oil requirements; domestic production covers only about 13%.
Russian crude constituted approximately 33% of India's total crude imports in FY 2025–26.
Russian oil imports are expected to average around 1.9 million bpd in May 2026, near record highs.
In March 2026, India's Russian crude purchases surged 94% month-on-month to approximately 2.06 million bpd.
OFAC General License 134B, authorising delivery of already-loaded Russian crude, lapsed on May 16, 2026 without renewal.
Russian Urals crude typically trades at a 15–20% discount to Brent crude, representing significant cost savings for Indian refiners.
Brent crude remains approximately 50% above pre-conflict levels, increasing the strategic value of discounted Russian supplies.