India’s imports of cheaper crude oil from Russia now account for 40% of its total oil imports. In fact, Russia has replaced Saudi Arabia and Iraq as the primary source of crude oil imports.
All of this while Russia continues to face sanctions imposed by block of Western nations. Even better, India is importing crude oil a rates lower than international prices and then exporting the value added products like diesel at prevailing market rates—providing Indian refineries a healthy mark-up. How did India pull off what some describe as India’s oil heist?
At another level India’s intervention has smoothened the flow of trade in petroleum and petroleum products, thereby avoiding the price spikes in the aftermath of the Russia-Ukraine war. Some experts had posited that disruption in global crude oil supply chains could cause prices to top $200.
Is this happy state of affairs, from India’s point of view, an outcome of India’s diplomatic manoeuvring? Or is it an instance of being at the right place at the right time?
To answer this and more we spoke to Harsh Pant, Professor of International Studies, King’s College, London.
