Over the past three years, Russia has firmly become India’s leading crude oil supplier, now making up more than 35% of India’s oil imports—a dramatic rise from under 2% before 2022. This shift was largely prompted by Western sanctions following the Ukraine war, which redirected discounted Russian oil toward Asian markets like India and China, according to Sputnik India.

With escalating tensions between Iran and Israel threatening oil flows through the Middle East, Russia’s role in India’s energy security has become even more crucial. The Strait of Hormuz—through which about 60% of India’s Middle Eastern oil imports pass—is increasingly at risk, posing a serious threat to India’s energy-dependent economy, which imports nearly 80% of its crude needs.

Russian oil avoids these vulnerable routes. Urals crude is transported via the Baltic and Black Seas through the Suez Canal or around Africa, while ESPO and Sokol grades ship directly from Russia’s Far East to India’s eastern ports. These alternative pathways shield Russian supplies from direct disruption, offering India a more secure energy option during geopolitical instability.

In April and May 2025, India’s Russian oil imports topped 1.9 million barrels per day, hitting a 10-month high and accounting for over 38% of total imports. These volumes have helped stabilize India’s refinery output and curb domestic fuel price volatility, even as Middle Eastern freight and insurance costs surged. With Russian Urals crude often priced below the G7 cap of $60 a barrel, Indian refiners have also seen improved profit margins.

Experts predict that if the Strait of Hormuz faces further disruption, India will rely even more on Russian crude, particularly Urals and ESPO, which are now fully integrated into India’s refining infrastructure. While India has been diversifying imports from the U.S., West Africa, and Latin America, these options involve higher costs and longer shipping times, making Russian oil the most practical solution for now.

India’s energy strategy has shifted from focusing solely on cost efficiency to prioritizing security of supply. The country has increased flexibility by settling some Russian oil deals in yuan or dirhams, reducing reliance on Western financial systems. Even as price discounts narrow, Russian oil continues to offer strategic benefits in terms of stability and reliability.

Though a full closure of the Strait of Hormuz remains unlikely, any disruption could send global oil prices soaring past $100 per barrel and strain supply chains. In this context, Russia’s consistent oil supply acts as a critical buffer, helping India weather external shocks and maintain energy stability in a volatile global environment.

Disclaimer: This image is taken from Reuters.