India’s Russian oil: In recent times, India’s decision to buy oil from Russia has become a major topic of discussion on the international stage. Despite US pressure and tariffs, India is not only continuing to buy Russian oil but has also increased the quantity. Behind this decision lie India’s own economic and geopolitical interests, which indicate a new direction in the country’s energy security and foreign policy.
India’s Record in Russian Oil Imports
In August, India set a new record by purchasing 2 million barrels of Russian oil per day, a significant increase from 1.6 million barrels in July. It is estimated that this amount could increase by another 10-20% in September. As a result, Russia now supplies nearly 40% of India’s total crude oil imports. These statistics alone show how crucial Russian oil has become for India.
US Reaction and Tariff Imposition
In response to India’s move, the United States imposed a 50% tariff on most Indian goods starting August 27th. The US argues that by buying Russian oil, India is undermining Western sanctions. Through this, they aim to pressure India to reduce its dependence on Russian oil and decrease Russia’s revenue.
India’s Stance and Advantages
The chairman of India’s ONGC, Arun Kumar Singh, has clearly stated that India will continue to buy Russian oil as long as it remains beneficial. The main reasons for this are:
- Economic Benefit: Russian oil is available at a discount of about $8-10 per barrel, which is a significant financial advantage for India. Since 2022, India has saved approximately $17 billion due to this discount.
- Energy Security: India imports 85% of its total crude oil demand. Cheap Russian oil strengthens India’s energy security and provides a buffer against global oil price volatility.
- Autonomy in Foreign Policy: This decision is a reflection of India’s independent foreign policy, showing that it gives top priority to its national interests.
Geopolitical and Economic Impact
This decision by India has some far-reaching implications:
- Gains: India is saving a substantial amount of money through cheap oil, which is strengthening the country’s economy.
- Losses: US tariffs could affect about $35-40 billion of Indian exports annually, especially in the textile, apparel, jewelry, and leather industries.
- Mitigation: To offset this loss, India is looking for new export markets like China, Russia, Africa, and the European Union.
- India-US Relations: The relationship between the two countries is currently at its lowest point since 1998, which could affect defense and technology partnerships.
- India-Russia Relations: On the other hand, India’s relationship with Russia is getting stronger, and long-term oil contracts are becoming more stable.
Overall, India is trying to follow a balanced policy, prioritizing the country’s economic development and energy security. Although there has been some strain in relations with the United States, India is committed to maintaining a strong relationship with Russia in its national interest.
