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Russian oil continues flowing into India in significant volumes, with the most recent data showing 1.75 million barrels per day arriving in May, according to energy market analysts and customs data released this week. This represents a slight decline from April’s imports but still accounts for approximately 40% of India’s total crude oil imports.

The sustained high volume of Russian crude purchases comes despite Western sanctions designed to limit Moscow’s oil revenue following its invasion of Ukraine in February 2022. India, which previously imported minimal amounts of Russian crude, has emerged as one of the largest buyers of discounted Russian oil since the conflict began.

“India has strategically leveraged the situation to secure energy supplies at favorable prices,” said Vikram Singh, an energy economist at the Delhi-based Center for Resource Management. “The government’s approach has been pragmatic, prioritizing energy security and economic considerations.”

Indian refiners have been attracted by discounts that have at times reached $15-20 per barrel below international benchmark prices, though the price advantage has narrowed in recent months to roughly $3-5 per barrel. The purchases have helped India manage inflation and provided significant savings for the country’s economy, which imports more than 85% of its oil needs.

The main Russian crude grades flowing into India include Urals, ESPO, and Sokol, primarily shipped from Russia’s western ports and far eastern terminals. Indian refiners Reliance Industries and Nayara Energy have been among the most active buyers, with state-owned enterprises like Indian Oil Corporation also participating significantly in these purchases.

The trade relationship has required both countries to develop alternative payment mechanisms to circumvent Western financial restrictions. Banking sources indicate that much of the trade now occurs in non-dollar currencies, including the UAE dirham, and through banks not exposed to Western financial systems.

“The payment infrastructure between India and Russia has evolved considerably over the past year,” noted Rahul Bajaj, international trade analyst at the Mumbai Economic Forum. “What began as a temporary workaround has developed into a sophisticated alternative trading system that may have long-term implications for global oil markets.”

The continued flow of Russian oil has drawn criticism from some Western allies, though U.S. officials have moderated their stance in recent months, acknowledging India’s energy security needs. The G7 price cap mechanism, which aimed to limit Russian oil revenues while keeping supplies flowing, has faced implementation challenges as Moscow developed a “shadow fleet” of tankers operating outside Western insurance and shipping networks.

Indian officials have consistently maintained that their purchases violate no international sanctions and that energy security remains a national priority. External Affairs Minister S. Jaishankar recently stated, “Every country will try to ensure the best deal possible to cushion high energy prices, and that is exactly what we are doing.”

Refining industry experts point out that the relationship benefits both nations. Russia needs customers for its redirected crude supplies, while India gains access to discounted energy resources that support its manufacturing sector and economic growth.

The trade pattern also demonstrates the shifting dynamics in global energy markets, with traditional trade routes being reconfigured in response to geopolitical developments. Asian markets, including China and India, have absorbed much of the Russian crude that previously flowed to European buyers.

Energy analysts suggest this pattern is likely to persist as long as discounts remain attractive and payment mechanisms continue to function. However, potential challenges include further tightening of Western sanctions, shipping insurance complications, or changes in the global oil supply-demand balance.

For now, the Russia-India oil trade represents one of the most significant examples of how the Ukraine conflict has redrawn global energy trade maps, creating new interdependencies that may outlast the current geopolitical crisis.