Trade Ties
India's purchase of Russian oil keeping prices stable, recognises US' Gor
This story was originally published at 13:37 IST on 11 March 2026
Register to read our real-time news.Informist, Wednesday, Mar. 11, 2026
NEW DELHI – India has been a "great" partner in maintaining stable oil prices around the world, and the US recognises the ongoing purchases of Russian oil as a part of that effort, US Ambassador to India Sergio Gor said Wednesday. "India is one of the largest consumers and refiners of oil and it is essential for the United States and India to work hand in hand for market stability for Americans and Indians," Gor said in a post on microblogging site X, formerly Twitter.
It is safe to say the US' dynamics with India's economic relationship with Russia has come full circle, with Washington first penalising New Delhi for its purchase of oil and arms from Moscow, to now acknowledging that the move has helped ensure low energy prices. While India has traditionally relied on Moscow for military equipment, New Delhi became one of the biggest buyers of the country's crude oil since Russia invaded Ukraine in February 2022.
India and Russia's oil trade, however, was no longer a bilateral issue, with US President Donald Trump penalising India with 25% punitive tariff for the trade. Russian crude shipments to India have also faced several roadblocks owing to the West's sanctions on Russia's major crude oil producers as well as cargoes. India's trade with Russia also became a bone of contention in India's negotiations with the US for a bilateral trade agreement. Trump had threatened to hike the penal tariff further.
India too, "agreed" to cut Russian oil import under the first tranche of the trade deal, Trump had claimed while announcing the deal on Feb. 2. The change in the US' view about Russian oil has been due to the severe crunch in energy availability globally following the conflict in West Asia.
The world faces fresh geopolitical risks after Israel and the US launched joint military strikes on Iran on Feb. 28, prompting retaliation from Tehran. Iran's Supreme Leader, Ayatollah Ali Hosseini Khamenei, and several of the country's top military leaders were killed in the first wave of attacks by Israel and the US. Iran has since retaliated against Israel and also targeted US military installations around the Persian Gulf.
Iran has also shut the Strait of Hormuz, a narrow waterway that connects the Persian Gulf to the Indian Ocean, resulting in a sharp jump in prices of crude oil and natural gas. A fifth of the global crude oil supply flows through the Strait of Hormuz. About half of India's crude oil imports – primarily from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait – also pass through the strait, making the country particularly vulnerable to shipping bottlenecks there and to surging freight and insurance rates.
Brent crude oil prices have surged since then, reaching $119.50 per barrel on Monday, the highest since June 2022. It has since cooled off from that level and at 1305 IST, was trading at $88.43 per barrel, still higher than the average of $65 per barrel before the war broke out. Against this backdrop, the US issued a 30-day waiver on Friday to allow Indian refiners to buy Russian oil. The measure allows India to buy oil from Russia only for cargoes stranded at sea, helping alleviate some pressure on India from Iran's closure of the Strait of Hormuz to some vessels, as the naval passage facilitates 40-50% of India's crude oil imports.
Meanwhile, India has been actively trying to import oil from diversified destinations, and has issued orders to refiners to prioritise production of domestically used fuel over industrial and commercially used products. End
US$1 = INR 91.96
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Priyasmita Dutta
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
