https://sputniknews.in/20260520/buying-russian-crude-reduces-pressure-on-indian-rupee-oil-analyst-10948421.html
Buying Russian Crude Reduces Pressure on Indian Rupee: Oil Analyst
Buying Russian Crude Reduces Pressure on Indian Rupee: Oil Analyst
Sputnik India
The Indian Rupee (INR) this week crashed to an all time low of 96.61 vis-à-vis US Dollar due to the Hormuz energy shock, a stronger US Dollar (USD) and lackadaisical FDI inflows as well as higher FPI outflows being the
2026-05-20T13:20+0530
2026-05-20T13:20+0530
2026-05-20T13:21+0530
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Sustained purchases of Russian crude by India not only helps Delhi in bolstering its energy security amid the worst energy shock in history, but also stabilises the position of Indian Rupee (INR), an oil analyst has told Sputnik India.Arpit highlighted that buying Russian crude amid geopolitical volatility has helped India to ease pressure on current accounts and supported the balance of payments.The LSEG specialist estimated that Delhi was able to save $7-10 billion annually, thereby reducing pressure on the Indian Rupee as well.The world’s fastest-growing major economy and the most populous nation depends on imported crude to meet around 85% of its requirements, and has been taking steps to increase its strategic petroleum reserves (SPR), currently having 74 days of stockpiles.A senior Indian government official told reporters at a briefing that New Delhi this week has continued with its Russian oil purchases as it made “commercial sense” to do so. Sujata Sharma, the Joint Secretary at Indian Petroleum Ministry, said that Delhi has kept up with its oil sourcing from Russia regardless of the waiver. Hours after she made the statement, the US Treasury Secretary Scott Bessent announced a waiver to allow countries to buy Russian oil “stranded at sea”, the third waiver since March.In recent weeks, Prime Minister Narendra Modi has himself made rare austerity appeals to the Indian public asking them to conserve forex reserves, pegged at just under $700 billion, amid rising oil bills as the status of Strait of Hormuz remains unresolved.According to Kpler, India’s Russian crude imports averaged around 2.3 million barrels per day (bpd) in the first half of May, the highest levels till date.
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Buying Russian Crude Reduces Pressure on Indian Rupee: Oil Analyst
13:20 20.05.2026 (Updated: 13:21 20.05.2026) The Indian Rupee (INR) this week crashed to an all time low of 96.61 vis-à-vis US Dollar, with the Hormuz energy shock, a stronger US Dollar (USD) due to the Fed’s stance and lackadaisical FDI inflows as well as higher FPI outflows being the primary reasons.
Sustained purchases of Russian crude by India not only helps Delhi in bolstering its energy security amid the worst energy shock in history, but also stabilises the position of Indian Rupee (INR), an oil analyst has told Sputnik India.
“India’s experience with Russian crude over the past few years has demonstrated its tangible benefits across both energy, security, and external balances,” said Arpit Chandna, an energy specialist at London Stock Exchange Group (LSEG).
Arpit highlighted that buying Russian crude amid geopolitical volatility has
helped India to ease pressure on current accounts and supported the balance of payments.
“The parallel adoption of rupee-based settlement mechanisms has also helped limit dollar outflows, supporting foreign exchange reserves and moderating currency volatility,” Chandna reckoned.
The LSEG specialist estimated that Delhi was able to save $7-10 billion annually, thereby reducing pressure on the Indian Rupee as well.
“At the same time, the shift has enabled India to diversify away from a traditionally Middle East centric sourcing strategy, improving supply, resilience amid geopolitical disruptions,” Chandna said.
The world’s fastest-growing major economy and the most populous nation depends on imported crude to meet around 85% of its requirements, and has been taking steps to increase its strategic petroleum reserves (SPR), currently having 74 days of stockpiles.
A senior Indian government official told reporters at a briefing that New Delhi this week has continued with its Russian oil purchases as it
made “commercial sense” to do so. Sujata Sharma, the Joint Secretary at Indian Petroleum Ministry, said that Delhi has kept up with its oil sourcing from Russia regardless of the waiver. Hours after she made the statement, the US Treasury Secretary Scott Bessent announced a waiver to allow countries to buy Russian oil “stranded at sea”, the third waiver since March.
In recent weeks, Prime Minister Narendra Modi has himself made rare austerity appeals to the Indian public asking them to conserve forex reserves, pegged at just under $700 billion, amid rising oil bills as the status of Strait of Hormuz remains unresolved.
According to Kpler, India’s Russian crude imports averaged around 2.3 million barrels per day (bpd) in the first half of May, the highest levels till date.
