India has shifted its focus away from Russian crude oil and towards the United States and the Persian Gulf due to transportation problems and complicated payment transactions. This move is seen as an attempt by India to please Western countries, which have imposed sanctions on Russia following the war of aggression in Ukraine. According to data from the International Energy Agency (IEA), Russian exports of petroleum products have decreased, leading Indian companies to increase purchases from the United States.
Indian refineries are turning to the United States due to import problems with Russian oil. The Petroleum Minister of India confirmed the decrease in Russian oil purchases, citing the need to obtain energy at the cheapest price, while acknowledging potential political motivations behind the shift. In addition to transportation issues, Indian refineries have faced challenges with payment transactions, as Russia has been cut off from international payment services due to the conflict in Ukraine. This has led Indian refiners to seek alternative sources in order to maintain good relations with Western countries.
Despite Western sanctions, Russian oil continues to flow into Europe, with Indian refineries increasing exports to the EU market using the same Russian barrels in which the oil was imported. Chinese demand for record cheap oil mirrors India’s shift in oil purchases. Both Asian giants have refrained from taking a stand on Russia’s military actions, opting instead to seek alternative sources for energy.
India’s significant refining capacity allows it
