Kumar Bahukhandi
Russia sells crude oil to India at a discount, which is $4-5 per barrel less than the global market price (Brent crude). The average price of Russian oil from 2022 to 2025 was $65-75 per barrel, while the price of Brent crude was around $80-85 per barrel. India has an estimated saving of US$11 to US$25 billion in 3 years due to buying crude oil from Russia.
America and NATO, which until a few days ago were expressing concern over India’s import of crude oil from Russia, are now directly talking in threatening language. NATO said on Wednesday that if India, China and Brazil continue to import crude oil from Russia, then America can impose secondary sanctions of 100 percent on these countries.
America warned India that it will have to follow the policies of Western countries regarding Russian oil import, otherwise it may have to face trade and diplomatic consequences. In fact, America and NATO link the import of crude oil from Russia to the Ukraine war. America believes that if India and China do not import crude oil from Russia, Moscow will not be able to bear the cost of the war with Ukraine and it will be forced to stop the war.
But this desire of America is a loss deal of billions of dollars for India and China.
India will save 11 to 25 billion dollars in three years
India imports more than 85% of its crude oil requirement. Despite increasing domestic production, India has to import a huge amount of oil from abroad for its economy and energy needs. India imports about 35% of its total oil requirement from Russia, which, being cheaper, has helped India save 10.5 to 25 billion dollars between 2022-2025.
In early 2025, India imported about 40% of its total crude oil from Russia. In May-June 2025, this quantity was between 38–44%.
Let us tell you that before 2022, the major countries selling oil to India included Iraq, Saudi Arabia, United Arab Emirates and the United States. But in 2022, when Russia invaded Ukraine, it started selling cheap crude oil to countries like India, China and Turkey to meet its war expenses.
By purchasing cheap crude oil from Russia, India has saved an estimated US$ 11 to 25 billion in the period 2022-2024.
Crude Russian oil is cheaper by 11 to 16%
India imports more than 85% of its crude oil needs. Despite increasing domestic production, India has to import a large amount of oil from abroad for its economy and energy needs. India imports about 35% of its total oil requirement from Russia, which has helped India save $10.5 to $25 billion between 2022-2025 due to its low price.
In early 2025, India imported about 40% of its total imported crude oil from Russia. In May-June 2025, this quantity was between 38–44%.
Let us tell you that before 2022, the major countries selling oil to India included Iraq, Saudi Arabia, United Arab Emirates and the United States. But in 2022, when Russia invaded Ukraine, it started selling cheap crude oil to countries like India, China and Turkey to meet its war expenses.
By purchasing cheap crude oil from Russia, India has saved an estimated US$11 to $25 billion in the period 2022-2024.
In the financial year 2023-24 itself, India saved about $ 7.9 billion (about Rs 65,000 crore) by importing Russian oil at a discount. Due to getting cheap crude oil from Russia, India’s oil bill remained low and helped in controlling the current account.
Let us tell you that Russian crude oil is available on average 11 to 16% cheaper than traditional suppliers (such as Middle East).
Russia sells crude oil to India at a discount, which is 4-5 dollars per barrel less than the global market price (Brent crude). From 2022 to 2025, the average price of Russian oil was $ 65-75 per barrel, while the price of Brent crude was around $ 80-85 per barrel.
Countries like Saudi Arabia and Iraq sell oil at a price close to or slightly lower than Brent crude, i.e. $ 80-85 per barrel. Usually Saudi oil is 10-15% more expensive than Russian oil.
If India buys the same amount of oil from the Middle East, then an additional cost of $4-5 per barrel will cost India billions of dollars annually. For example, a difference of $4 per barrel on import of 2 million barrels per day results in an additional cost of ~$2.9 billion annually.
Logistic problems on supply from the Middle East
Oil supply from the Middle East has always brought strategic and logistical problems for India.
Petroleum Minister Hardeep Singh Puri has said that supply of oil from other countries is possible, but it will be expensive and logistics challenges may increase. Global oil supply is already unstable due to the West Asia war. Recently, when Israel attacked Iran, Iran threatened to close the Strait of Hormuz route. In such a situation, problems may arise for India.
The delivery cost of Russian oil is also relatively low because Russia supplies India rapidly through sea routes (such as the Black Sea and Baltic routes).
