India is facing mounting pressure to reconsider its reliance on Russian oil imports, as the United States has imposed sanctions on key Russian oil companies that supply more than 60% of India’s crude oil. With the sanctions targeting these major exporters, Indian regulators and major refineries are now carefully assessing the risks involved and actively seeking alternative supply routes. This development comes amid heightened global tensions and growing concerns over the geopolitical implications of India’s energy sourcing decisions.
The recent sanctions have sparked a flurry of activity among Indian energy stakeholders. Regulators are considering various strategies to mitigate potential supply disruptions while ensuring the country’s energy security. Major oil refineries are exploring partnerships with suppliers in other regions, including the Middle East, Africa, and Southeast Asia, to diversify their sources. However, the transition could be complex, given the existing infrastructure and long-term contracts with Russian suppliers.
India’s energy needs are vast, with over 10 million barrels of oil imported daily to meet domestic consumption and fuel its growing industries. While the switch away from Russian oil could reduce financial exposure to sanctioned entities, it may also increase costs in the short term due to the need to renegotiate contracts and explore new supply chains. Analysts suggest that India may need to balance its geopolitical interests with economic considerations as it navigates this critical transition in its energy policy.