https://sputniknews.in/20260122/russia-stays-vital-to-indias-oil-supply-oil-analyst-rejects-us-claim-10386282.html
Russia Stays Vital to India’s Oil Supply: Oil Analyst Rejects US Claim
Russia Stays Vital to India’s Oil Supply: Oil Analyst Rejects US Claim
Sputnik India
Both US President Donald Trump and Treasury Secretary Scott Bessent have claimed in recent weeks that India has abandoned its energy trade with Russia due to... 22.01.2026, Sputnik India
2026-01-22T19:33+0530
2026-01-22T19:33+0530
2026-01-22T19:33+0530
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Russia remains very much a part of India's core crude basket, and the recent dip in Russian barrels is just a "short-term disruption" blip tied to "compliance issues", says a commodities expert.He added that Middle East crude is increasingly being used as a backup, thanks to smoother logistics and fewer compliance hurdles.Ritolia's remarks came in the aftermath of Bessent's declaration on Wednesday, in which he insisted that India has stopped buying oil from Russia because of persistent US pressure.Indian exports to the US currently face 50% tariffs, including 25% punitive levy imposed in August 2025 for its energy imports from Russia. Despite that, India’s imports of Russian crude, though down from the record high of 2023-25, remain above 1.2 million barrels per day, Ritolia noted. India's crude buying in January 2026 shows a clear shift toward lower-risk and more reliable supply, with Middle East barrels rising while Russian crude flows remain present but more selective and compliance-driven, the oil specialist noted. India's early 2026 crude strategy takes a cautious approach, highlighting supply diversification, export flexibility, and execution certainty, though refinery economics remain the key driver, he emphasized. India will likely keep buying Russian crude in early 2026, but at a slightly lower level than the record highs seen in 2023–2025. The pullback looks more like a short-term disruption from compliance issues rather than India moving away from Russia completely; it's just a near term re-alignment, nothing else. Russian crude is economical and remains a driver for refinery margins, the energy pundit asserted. India's Russian crude purchases in January 2026 and across Q1 of 2026 are expected to average around 1.2 mb/d, but flows are likely to stay uneven rather than stable. The drop seen in December appears to reflect a sanctions and compliance-linked reset across the buyer base, Ritolia added.Meanwhile, Reliance Industries Limited, operator of the world's largest refinery in Jamnagar, Gujarat, will receive fresh supplies of sanctions-compliant Russian oil in the next two months, a significant development, considering the Mukesh Ambani-led company put a pause on its procurement from there for a month, Reuters reported earlier this week.
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Russia Stays Vital to India’s Oil Supply: Oil Analyst Rejects US Claim
Both US President Donald Trump and Treasury Secretary Scott Bessent have claimed in recent weeks that India has abandoned its energy trade with Russia due to severe American tariffs.
Russia remains very much a part of India's core crude basket, and the recent dip in Russian barrels is just a "short-term disruption" blip tied to "compliance issues", says a commodities expert.
"India's January 2026 crude purchasing strategy is best described as 'de-risking rather than replacing.' Russia remains in the system ," Sumit Ritolia, Lead Research Analyst –Refining, Supply & Modeling, at the real-time global commodity intelligence and analytics firm Kpler, told Sputnik India.
He added that Middle East crude is increasingly being used as a backup, thanks to smoother logistics and fewer compliance hurdles.
Ritolia's remarks came in the aftermath of Bessent's declaration on Wednesday, in which he insisted that India has stopped buying oil from Russia
because of persistent US pressure.
"India started buying Russian oil after the (Ukraine) conflict began, but President Trump put a 25% tariff on them, and India has geared down and has stopped buying Russian oil," Bessent said in an interview with Fox Business.
Indian exports to the US currently face 50% tariffs, including 25% punitive levy imposed in August 2025 for its energy imports from Russia.
Despite that, India’s imports of Russian crude, though down from the record high of 2023-25, remain above 1.2 million barrels per day, Ritolia noted.
India's crude buying in January 2026 shows a clear shift toward lower-risk and more reliable supply, with Middle East barrels rising while Russian crude flows remain present but more selective and compliance-driven, the oil specialist noted.
India's early 2026 crude strategy takes a cautious approach, highlighting supply diversification, export flexibility, and execution certainty, though refinery economics remain the key driver, he emphasized.
"Russia remains a key part of India’s core crude basket," with barrels increasingly sourced through refiners able to manage execution and compliance, Ritolia underscored.
India will likely keep buying Russian crude in early 2026, but at a slightly lower level than the record highs seen in 2023–2025.
The pullback looks more like a short-term disruption from compliance issues rather than India moving away from Russia completely; it's just a near term re-alignment, nothing else. Russian crude is economical and remains a driver for refinery margins, the energy pundit asserted.
India's Russian crude purchases in January 2026 and across Q1 of 2026 are expected to average around 1.2 mb/d, but flows are likely to stay uneven rather than stable. The drop seen in December appears to reflect a sanctions and compliance-linked reset
across the buyer base, Ritolia added.
Meanwhile,
Reliance Industries Limited, operator of the world's largest refinery in Jamnagar, Gujarat, will receive fresh supplies of sanctions-compliant Russian oil in the next two months, a significant development, considering the Mukesh Ambani-led company put a pause on its procurement from there for a month, Reuters reported earlier this week.
"At the same time, India is clearly backfilling reduced Russian intake through higher Middle East flows, while keeping Russian crude in the mix, where execution remains workable," Ritolia concluded.
