India is expected to continue importing Russian crude oil and liquefied petroleum gas (LPG) even after the end of a 30-day US waiver period, according to a report by Mint.
The development comes amid ongoing adjustments in global energy trade routes following Western sanctions on Russia and sustained volatility in international oil markets.
The continuation of imports places India within a broader group of countries that have maintained trade in Russian energy products despite evolving restrictions, enabled in part by alternative payment structures, rerouted shipping logistics, and price-based purchasing decisions.
India Energy Import Dependence
India remains heavily dependent on imported crude oil to meet domestic demand. According to data from the Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas, India imports more than 80% of its crude oil requirements.
This structural dependence has consistently shaped procurement strategies across administrations, with supply diversification identified as a policy priority in multiple government energy security frameworks.
The International Energy Agency (IEA) has also noted that India’s oil demand growth has made it one of the largest importers globally, with procurement decisions strongly influenced by price differentials and supply availability.
Russian Oil Trade Shift Post-2022
Following sanctions imposed by the European Union, United States, and allied countries on Russian energy exports in 2022, global oil trade flows underwent significant realignment.
IEA market reports from 2022 and 2023 noted that India increased its intake of discounted Russian crude during this period, as European buyers reduced direct purchases.
This shift was facilitated by:
- Repricing of Russian crude grades such as Urals
- Expansion of tanker shipping routes via intermediaries
- Use of alternative payment mechanisms in non-USD currencies in some transactions (as reported in multiple international trade analyses)
These developments contributed to a redistribution of global crude flows rather than a reduction in Russian export volumes overall, according to IEA tracking reports on global oil supply adjustments.
LPG Import Structure
India also imports liquefied petroleum gas (LPG), which is used primarily for household cooking under government subsidy-linked schemes.
Data from the Ministry of Petroleum and Natural Gas indicates that LPG consumption in India has grown steadily over the past decade, driven by expanded household connections under the Pradhan Mantri Ujjwala Yojana (PMUY).
Because domestic LPG production does not meet total demand, India supplements supply through imports from multiple regions, including West Asia and, in recent trade adjustments, Russia.
Waivers And Trade Mechanisms
The reported continuation of imports beyond the 30-day US waiver period reflects the use of temporary trade flexibility arrangements that have been applied in certain global energy transactions since 2022.
These waivers and exemptions have typically been linked to logistics adjustments in shipping, insurance coverage, and payment processing under evolving sanctions regimes.
While specific terms vary by transaction and jurisdiction, global trade data from institutions such as the IEA and UN Comtrade has documented the emergence of alternative trade corridors for Russian crude, including increased flows to Asian markets.
Energy Security First Logic
India’s energy choices have increasingly reflected a simple but hard economic truth: import dependency is structural, not optional. Crude oil imports meet over 85% of India’s domestic demand, according to long-standing estimates from government and industry energy assessments, including data frequently cited by the Ministry of Petroleum and Natural Gas.
Since 2022, Russian crude has become a significant component of India’s import basket after global sanctions reshaped supply chains. The International Energy Agency (IEA) has previously observed that India emerged as one of the largest buyers of discounted Russian crude following Western restrictions on Moscow’s energy exports.
In this context, continuing imports even after diplomatic waivers expire is less a deviation and more an extension of a strategy India has already normalized: diversify aggressively, buy opportunistically, and stabilize domestic fuel costs.
India’s Procurement Approach
Indian refiners, including both public and private sector companies, have adjusted sourcing strategies based on price competitiveness and supply availability.
According to publicly available trade tracking data and refinery import reports, crude procurement decisions are typically guided by:
- landed cost comparisons across suppliers
- refinery compatibility with crude grades
- freight and insurance costs
- supply stability considerations
This procurement model has remained consistent across multiple years and is not specific to any single supplier or geopolitical context.
Market And Supply Stability Context
India’s continued diversification of crude supply sources has been a recurring feature of its energy policy framework.
Government policy documents over the years, including energy security statements from the Ministry of Petroleum and Natural Gas, have emphasized the importance of avoiding overdependence on any single region for crude imports.
This approach has historically included sourcing from West Asia, Africa, Latin America, and, more recently, increased volumes from Russia following global market realignment.
