India’s Russian Oil Dilemma: Cheap Crude, Costly Consequences
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Russia’s President Vladimir Putin (R) speaks with India’s Prime Minister Narendra Modi (L) during a visit to the shipyard Zvezda, as Rosneft Russian oil giant chief Igor Sechin (C) accompanies them, outside the far-eastern Russian port of Vladivostok on September 4, 2019, ahead of the start of the Eastern Economic Forum hosted by Russia. (Photo by Alexander NEMENOV / POOL / AFP) (Photo credit should read ALEXANDER NEMENOV/AFP via Getty Images) AFP via Getty Images India has spent the past two years transforming itself into one of the biggest buyers of Russian oil — a shift that has saved it billions while providing Moscow with a financial lifeline as it wages war in Ukraine. Now, a sharply worded letter from Ukrainian MP Oleksii Goncharenko raises the stakes, arguing that India’s bargain-hunting is prolonging the conflict and calling for Europe to sanction Mukesh Ambani, the billionaire whose refinery empire processes a large share of those Russian flows. That letter is not likely to alter India’s energy calculus. However, it highlights a deeper geopolitical tension: India is attempting to shield its domestic economy from global shocks while simultaneously increasing its reliance on Russian oil. The more entrenched that relationship becomes, the more challenging it will be for India to manage the diplomatic fallout. Iuliia Mendel, former press secretary to President Zelensky, told me that Kyiv is growing frustrated that India’s discounted Russian oil purchases extend Russia’s ability to fund its war—a concern Goncharenko made explicit in a letter to Indian officials: “Every discounted barrel India buys is another day Russia can afford to fight.” For India, the logic is simple. Russia offered steep discounts on its main oil exports—at times as low as $35 a barrel—allowing India to shield consumers from price spikes and keep inflation under control. India now imports roughly…
Filed under: News - @ December 2, 2025 2:57 pm