India has purchased around 30 million barrels of unsold Russian crude after the United States issued a 30-day waiver allowing the country to buy shipments already stranded at sea, Bloomberg reported citing sources.
According to the report, Indian refiners moved quickly to secure the available cargoes, many of which were already positioned in Asian waters, offering an immediate alternative as disruptions hit oil flows from the Middle East.
India had earlier scaled back purchases of Russian oil, replacing part of those supplies with crude from Saudi Arabia and Iraq. While New Delhi has never officially said it would stop buying Russian oil and a significant volume continues to flow. Though the overall import levels had declined in recent months.
The widening conflict in the Middle East has since disrupted traditional supply routes, with shipping traffic through the Strait of Hormuz severely affected after US and Israeli strikes on Iran.
Although the Strait of Hormuz is one of the world's most critical oil shipping lanes, only about 40% of India’s crude imports pass through the waterway. Still, the disruption has pushed Indian refiners to secure alternative crude supplies to maintain stable energy flows.
Indian refiners move quickly to secure cargoes
Following the waiver, Indian refiners including Indian Oil Corporation and Reliance Industries bought up nearly all available Russian cargoes in the spot market, according to sources cited by Bloomberg.
Much of the crude had already been loaded onto tankers and was moving through Asian waters but had not yet been committed to buyers.
Traders said Indian Oil purchased around 10 million barrels, while Reliance bought at least another 10 million barrels, with other Indian refiners taking the remaining volumes.
Russian crude offered included a range of grades such as Urals, ESPO and Varandey. The prices were offered at premiums of $2 to $8 per barrel over London’s Dated Brent benchmark, a sharp shift from earlier months when Russian oil traded at discounts to the global marker.
The surge in purchases comes amid major disruptions to global energy supplies caused by the escalating Middle East conflict. The Strait of Hormuz, which connects Gulf oil producers to global markets, has been effectively closed since US and Israeli strikes on Iran began, limiting access to Middle Eastern crude.
The disruption has forced importers such as India to quickly secure alternative supplies.
Tankers change course toward India
Several oil tankers that had initially been sailing away from the subcontinent have reversed course toward India following the waiver.
Among them are the vessels Maylo and Sarah, which recently changed their destination from Singapore and are now heading to Indian ports, according to shipping data cited by Bloomberg.
India traditionally imported little Russian oil before the Russian invasion of Ukraine, but the purchase increased after Western sanctions forced Moscow to offer crude at steep discounts.
At its peak in mid-2024, India’s imports of Russian oil exceeded 2 million barrels per day. However, purchases fell to about 1.06 million barrels per day in February, according to data from analytics firm Kpler, as India cut back under pressure from Washington.
US says waiver is temporary
The United States has earlier described the waiver as a temporary measure aimed at stabilising global energy markets during the ongoing Middle East crisis.
White House press secretary Karoline Leavitt said the move was intended to address short-term supply disruptions.
Responding to a question about the waiver, Leavitt said, "They came to this decision because our allies in India have been good actors and have previously stopped buying sanctioned Russian oil," she said.
"So as we work to appease this temporary gap of oil supply around the world because of the Iranians, we have temporarily permitted them to accept that Russian oil and this Russian oil was already at sea," she added.
She noted that the shipments would not boost Russia’s revenue, stating that, "It was already out on the water. So this short term measure, we don't believe it will provide significant financial benefit to the Russian government at this time."