India Should Buy More Russian Crude and Tap Its Own Resources To Plug Supply Gap

Chennai: With crude supplies from the Middle East coming under strain, India will have to look for more non-sanctioned oil from Russia and tap its own resources to meet its requirements, find experts.

India imports more than 85 per cent of the crude oil it consumes, with nearly 80 per cent sourced from West Asian producers and Russia. Both supply pillars are now under strain.

In 2025, nearly 50 per cent of India’s crude oil and LNG imports, and more than 85 per cent of its LPG imports, transited through the Strait of Hormuz.

Closure of the Strait of Hormuz would not only drive global oil prices but also threaten physical supply availability. Meanwhile, coming under pressure from US President Donald Trump, India has been reducing its imports of discounted crude from Russia.

Russia continued to be the largest supplier in February, but imports have been tapering since November and came down to 1 million barrels per day last month.

Experts find that India could buy from non-sanctioned suppliers in Russia. Lukoil and Rosneft are the two oil companies sanctioned by the US.

“Two large suppliers of crude oil from Russia have been sanctioned by the US. So, Indian companies have been compliant with the sanctions. so, whatever is the non-sanctioned crude, India could procure from those suppliers,” said Prashant Vasisht, senior vice president, corporate ratings, ICRA.

According to GTRI, the unfolding crisis has revived calls for a long-term reset in India’s energy strategy. In 1985, India produced nearly 85 per cent of the oil it consumed. Today, it imports almost 85 per cent, reflecting decades of slowing exploration and underinvestment.

“Reversing this imbalance will require opening new exploration blocks, improving contractual frameworks to attract investment, deploying advanced extraction technologies, and strengthening strategic energy infrastructure to reduce vulnerability to global shocks,” it said.