India's Resilient Russian Oil Imports Amid Policy Turmoil

India's import of Russian oil surged to 2 million barrels per day in August, constituting 38% of its total imports amid geopolitical tensions and tariff implications. Despite new US tariffs, Indian refiners haven't received government mandates to alter Russian crude purchases, focusing instead on economic considerations and potential energy security.

In a calculated move prioritizing economic factors, India's importation of Russian oil ramped up to 2 million barrels per day in August, representing 38% of its total crude oil imports, reports Kpler, a global analytics firm. This surge occurs despite heightened geopolitical tensions following the Trump administration's recent tariff hikes.

Industry analysts note that the Indian government hasn't issued directives to reduce consumption of Russian crude, indicating a stance of business as usual. Arvinder Singh Sahney of Indian Oil Corporation confirmed the absence of instructions to modify purchase volumes, stating that current import strategies are driven by economic rationale.

Meanwhile, refiners are cautiously observing global oil markets, with a growing interest in diversifying sources to include more US, West African, and Latin American supplies. Despite this diversification effort, replacing Russian oil is not an explicit goal, as its economic advantage has significantly impacted India's energy strategies since 2022.

(With inputs from agencies.)