India has saved $12.6 billion dollars by buying crude oil from Russia
While the United States President Donald Trump has imposed additional 25 per cent tariffs on India over its imports of Russian crude oil, India has benefited from these imports over recent years.
As per an analysis of India’s official trade data by The Indian Express, these imports have saved Indian refiners a substantial $12.6 billion over a little more than three years. The savings were calculated by comparing the landed price of India’s Russian oil imports with crude from other countries.
If New Delhi hadn’t intervened to purchase Russian oil, there’s a strong probability that global crude prices would have soared, leading to a significant increase in India’s oil import bill due to its heavy dependence on oil imports.
Considering this perspective, the potential savings for India could be much greater than what is indicated by the trade data analysis. This is contingent on the extent to which the international oil price would have risen if India hadn’t increased its imports of Russian crude after it was largely rejected by the West.
The Trump administration views India’s substantial imports of Russian crude as a potential tool to pressure the Kremlin into ceasing the Ukraine conflict. Moscow’s primary revenue source is oil exports, with New Delhi being the second-largest purchaser after Beijing.
One potential reason why India hasn’t succumbed to US pressure regarding oil imports from Russia is that it is not willing to sacrifice its strategic autonomy, refusing to let Washington dictate its business partners, especially when it involves Russia, a long-standing and significant strategic ally for India.