India imported €144 billion worth of Russian oil since Ukraine war

The ongoing significant imports of Russian crude oil by India since the Russia-Ukraine conflict erupted in February 2022 represent a critical facet of India's foreign policy, energy security strategy, and economic resilience. Prior to the war, Russia was a marginal supplier of crude oil to India, which traditionally relied heavily on Middle Eastern sources, followed by the United States and Africa. However, the imposition of stringent sanctions by Western nations (including the US, EU, and G7) on Russia, coupled with a G7-led price cap on Russian oil, created a unique market dynamic: steeply discounted Russian crude.

India, as the world's third-largest oil consumer and importer (importing over 85% of its crude oil needs), swiftly capitalized on this opportunity. The data indicating €144 billion worth of Russian oil imports underscores a dramatic shift in India's procurement strategy. This move was primarily driven by economic pragmatism: securing oil at significantly lower prices provided a crucial buffer against global inflationary pressures, helped manage the current account deficit, and ensured a stable supply for its rapidly growing economy. This decision aligns with India's long-standing policy of prioritizing national interest and energy security.

Several key stakeholders are central to this narrative. On one side, **India**, represented by its government (Ministry of Petroleum and Natural Gas, Ministry of External Affairs) and its public sector oil marketing companies (like Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum) alongside private refiners (such as Reliance Industries and Nayara Energy), is the major buyer. Their objective is to ensure affordable and secure energy supplies for the nation. On the other side is **Russia**, whose state-owned and private oil companies seek to maintain revenue streams amidst Western sanctions, finding a willing market in India and China. **Western nations**, particularly the United States and the European Union, are critical stakeholders, as they are the architects of the sanctions regime against Russia, aiming to cripple its war economy. While they have expressed concerns, they have largely tolerated India's purchases, understanding India's energy needs and its strategic importance as a global partner, though recent US sanctions on specific Indian entities signal a potential tightening of this stance.

This trade relationship holds profound significance for India. Economically, the discounted oil has saved India billions of dollars, directly impacting its trade balance and helping to contain domestic fuel prices, thereby mitigating inflationary pressures. Politically, it reinforces India's commitment to strategic autonomy in its foreign policy, demonstrating its resolve to make decisions based on its national interest rather than succumbing to external pressures. This balancing act between its traditional strategic partner, Russia, and its burgeoning ties with the West is a hallmark of India's contemporary diplomacy.

Historically, India and Russia have shared a robust strategic partnership, particularly in defense and technology, dating back to the Cold War era. This existing trust and diplomatic channel facilitated the rapid increase in oil trade. India's energy import dependence has always been a critical driver of its foreign policy, making diversification of sources a perpetual goal. The current scenario, while opportunistic, also reflects a deeper engagement with a long-term partner.

Looking ahead, the future implications are multifaceted. India will likely continue to navigate a complex geopolitical landscape. The risk of secondary sanctions from the US remains a concern, which could force Indian refiners to recalibrate their purchasing strategies. This might accelerate India's efforts to further diversify its energy basket, exploring new sources from the Middle East, Africa, and the Americas, and aggressively pursuing renewable energy transitions. The long-term trajectory of India-Russia trade, including potential non-dollar payment mechanisms like the rupee-ruble trade, will also be shaped by evolving geopolitical realities. India's role as a major energy consumer will continue to influence global oil market dynamics.

While specific constitutional articles do not directly govern individual trade deals, the overarching framework for such decisions stems from the executive powers of the Union Government. **Article 53** vests the executive power of the Union in the President, exercised by the Council of Ministers headed by the Prime Minister (**Article 74**). These bodies, primarily through the Ministry of External Affairs and the Ministry of Commerce and Industry, formulate and execute foreign policy and trade agreements. The **Foreign Trade (Development and Regulation) Act, 1992**, empowers the government to make provisions for the development and regulation of foreign trade. Furthermore, **Article 51** of the Directive Principles of State Policy, which advocates for the promotion of international peace and security and the maintenance of just and honourable relations between nations, broadly underpins India's approach to international relations, where national interest (including energy security) is paramount.