Regularly bought Russian oil irrespective of US sanctions waiver, will continue importing: Govt official

A senior government official confirmed that India has been purchasing Russian crude oil consistently, irrespective of whether a US sanctions waiver was in pl...

What Happened

A senior government official confirmed that India has been purchasing Russian crude oil consistently, irrespective of whether a US sanctions waiver was in place, and intends to continue doing so.
The US Treasury issued an emergency waiver in March 2026 allowing Indian refiners to receive Russian crude without triggering secondary sanctions; the waiver was extended twice and a second 30-day extension was confirmed around May 18, 2026.
Russian crude flows into India were running at approximately 1.9 million barrels per day (bpd) by May 2026, with peak volumes reaching 2.3 million bpd earlier in the month as refiners front-loaded purchases.
Russian Urals crude has been trading at discounts of $15–20 per barrel below the Brent benchmark, making it significantly cheaper for Indian refiners.

Static Topic Bridges

India's Oil Import Dependence and the Concept of Energy Security

India is the world's third-largest oil consumer and imports approximately 88% of its crude oil requirement — a structural vulnerability that has intensified policy focus on diversifying supply sources and building strategic reserves. Energy security refers to a nation's ability to ensure reliable, affordable, and adequate energy supply to sustain economic activity and national welfare.

India's crude oil import dependence reached 88.2% in fiscal year 2025, among the highest for a major economy.
Over 80% of India's oil imports pass through the Strait of Hormuz, making any disruption in the Persian Gulf a systemic risk.
India's Strategic Petroleum Reserve (SPR) has an operational capacity of 5.33 million tonnes, stored in underground rock caverns at Visakhapatnam, Mangalore, and Padur.
At current filling levels (~64% capacity), the SPR provides approximately 5 days of cover; combined with commercial stocks held by refiners, total cover is about 74–75 days — below the 90-day IEA standard.

Connection to this news: India's insistence on continuing Russian oil imports regardless of sanctions is a direct expression of energy security calculus — price advantage and supply diversification outweigh diplomatic friction with the US.

US Secondary Sanctions and Their Extraterritorial Reach

US secondary sanctions differ from primary sanctions in that they target third-country entities (not US persons or companies) that conduct transactions with a sanctioned country. They are a tool of economic statecraft designed to enforce US foreign policy goals beyond American borders.

Primary sanctions prohibit US persons and companies from transacting with sanctioned entities; secondary sanctions extend penalties to foreign firms that do so.
The US Treasury's Office of Foreign Assets Control (OFAC) administers the sanctions regime; it can designate foreign banks and shipping companies, cutting them off from the US dollar system.
A "sanctions waiver" (also called a general licence) is a OFAC-issued carve-out that temporarily exempts specified transactions or categories of buyers from penalty, typically citing humanitarian or supply stability grounds.
The Russia sanctions architecture was significantly expanded after February 2022 and is maintained under several executive orders and legislative acts.

Connection to this news: The waiver issued to Indian refiners was an emergency measure tied to Strait of Hormuz disruption following the Iran conflict that began in early 2026; India's assertion that it bought Russian oil "irrespective" of the waiver signals that it does not accept the legal premise that a waiver is required in the first place.

India's Policy of Strategic Autonomy in Foreign Policy

India's foreign policy tradition — rooted in the Non-Aligned Movement and later formalised as "strategic autonomy" — emphasises the right to make independent decisions on national interest questions without aligning with any single power bloc. This has been especially visible in India's approach to Russia–Ukraine conflict-related sanctions.

India abstained on all major UN General Assembly resolutions calling for condemnation of Russia's actions in Ukraine after February 2022.
India's position: sanctions not sanctioned by the UN Security Council are unilateral and do not carry international legal obligation for third parties.
India has deepened trade, defence, and energy ties with Russia even as Western nations imposed sweeping economic restrictions.
The Rupee–Rouble payment mechanism was developed in part to facilitate trade outside dollar-based channels, though most Russian oil payments have continued in third-currency arrangements (UAE dirham, Chinese yuan).

Connection to this news: The official's statement — that India bought Russian oil "irrespective" of the waiver and will continue — is a public articulation of strategic autonomy: India reserves the right to manage its energy security on its own terms.

India's Crude Import Basket and Supplier Diversification

Since early 2022, India has dramatically rebalanced its crude import basket, significantly increasing the Russian share at the expense of Middle Eastern suppliers.

Before the Russia–Ukraine conflict, Russia accounted for less than 1% of India's crude imports; by fiscal 2024–25, the share had risen to over 35–40%.
India's largest refiners — Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), Reliance, and Nayara Energy (part-owned by Rosneft) — all increased Russian crude intake.
The discount on Russian Urals ($15–20/barrel below Brent) translates to substantial savings: at 2 million bpd import volume, a $15 discount saves approximately $30 million per day or roughly $11 billion per year.
Middle East suppliers (Saudi Arabia, UAE, Iraq) remain important for diversification; India has also increased Venezuelan crude imports as a supplementary source.

Connection to this news: The volumes cited (up to 2.3 million bpd) represent a record high for Russian crude in India's import mix, underscoring how deeply the rebalancing has gone since 2022.

Key Facts & Data

India's crude import dependence: ~88.2% of total consumption (FY2025)
Russian crude share in India's import basket (FY2024–25): ~35–40%
Peak Russian crude import volume (May 2026): ~2.3 million barrels per day
Urals crude discount to Brent: $15–20 per barrel
Financial saving at $15 discount on 2 mbpd: ~$30 million/day (~$11 billion/year)
US sanctions waiver: issued March 2026 (emergency); first extension mid-April; second extension confirmed ~May 18, 2026
India's SPR capacity: 5.33 million tonnes across Visakhapatnam, Mangalore, and Padur
India passes over 80% of its oil imports through the Strait of Hormuz