Is India really prepared to manage the United States’ sanctions on Russian crude oil?

• Trump threatened sanctions on Russia if Ukraine’s actions cease.

• Trump also expressed concerns about Iran’s stance on the nuclear deal.

Impact on Global Oil Supply

• The situation could affect global oil supply, including India, which relies on imports for 88.1% of its oil requirements.

• India’s oil imports from Russia declined 14.5% sequentially in February to 1.43 million barrels a day, the lowest since January 2023.

• Russia’s share in India’s imports also fell to about 30%, lower than the 38% average in 2024.

• Imports from other key West Asian suppliers also declined sequentially.

India’s Oil Diversification Strategy

• India is the third largest oil importer globally, importing from 39 countries.

• Union Minister Hardeep Singh Puri stated that India can leverage the market consumption cart to diversify and buy from the cheapest source.