India Boosts Russian Oil Amid Red Sea Crisis

India is significantly boosting its imports of Russian crude oil in response to escalating tensions in West Asia, which have severely disrupted shipping routes through the Strait of Hormuz. Commodity analytics firm Kpler data indicates that approximately 33 million barrels of Russian crude are expected to be unloaded in India this month, marking a notable increase in purchases by Indian refiners.

This ramp-up follows a recent US waiver that allows transactions for Russian cargoes loaded before a specified cut-off date, even if parts of the supply chain involve sanctioned vessels. This waiver provides operational clarity, helping to secure India's crude supply at a time when the Strait of Hormuz, a vital artery for global oil, is effectively stalled.

The renewed interest in Russian oil comes as global energy markets tighten, with Russian crude now trading at a premium to Brent crude. India, a major refining hub heavily reliant on imports, received about 1.04 million barrels per day from Russia in February. Rising oil prices, with Brent near $93 a barrel, carry significant macroeconomic implications for India, as each sustained $1 increase in crude prices raises its import bill by roughly ₹16,000 crore annually.