India’s purchase of Russian oil has stabilized global markets, prevented an oil crisis, and kept fuel affordable. This FAQ addresses common misconceptions about India’s role, highlighting its adherence to international regulations.
India’s decision to buy oil from Russia has been making global headlines. Depending on who you ask, it’s either a lifeline for Moscow or a lifeboat for the world economy. The truth? It’s complicated. To clear the fog, here are 10 straight answers to the most common questions about India’s Russian oil strategy—and why it matters to you.
Q1. Has India given Putin a financial lifeline?
Not really. What India did was stop the world from tipping into an oil crisis. Russia supplies nearly 10% of global oil. If India had walked away, prices might have rocketed to $200 a barrel, hitting every driver, shopkeeper, and household across the world. Instead, by keeping oil flowing, India helped cool prices. Even US Treasury Secretary Janet Yellen said India’s role was stabilising.
Q2. Is India paying for Russian oil in US dollars?
No. The dollar isn’t part of these deals. Indian refiners mostly route payments through traders in other countries, often settling in currencies like the UAE dirham. And here’s the kicker—Washington never told India to stop buying. All of this happens within the rules set by the G7 and EU price cap.
Q3. Is this “black-market” oil?
No. Unlike Iranian or Venezuelan crude, Russian oil isn’t banned outright. Instead, it’s under a price-cap system designed by the West itself. The goal? Keep oil available while limiting Russia’s windfall. If the US truly wanted to ban it, they could have. They did not—because the world still needs it.
Q4. Did India import more just to make a profit?
No. When global prices spiked to $137 a barrel in 2022, India actually cut domestic fuel prices. State-run companies absorbed losses of around Rs 21,000 crore, and the government taxed exports to make sure no one was profiteering. The bigger picture: India’s imports softened the global shock and helped curb inflation for everyone.
Q5. Is India now a hub for laundering Russian oil?
That’s a myth. India has been the world’s 4th-largest refiner for decades. Refining crude and exporting products like diesel and jet fuel is how the energy trade works everywhere. Ironically, after Europe banned Russian crude, it turned around and imported Indian fuel made from Russian oil. That’s not laundering—it’s how supply chains function.
Q6. Are Indian refiners sending Russia’s profits abroad?
No. Most of the oil stays home. Roughly 70% of fuels refined in India are used domestically. Yes, one Reliance refinery has been export-focused since 2006, but that has nothing to do with the Ukraine war. In fact, exports have fallen as India’s own energy needs have grown.
Q7. Is India hitting US exporters with tariffs while helping Russia?
Not really. India’s $50 billion trade deficit with the US sounds big, but it’s tiny compared to America’s deficits with China, the EU, or Mexico. And India isn’t shutting the US out—New Delhi buys billions in aircraft, LNG, defence gear, and tech from American companies.
Q8. Is India freeloading on US defence?
Quite the opposite. India is co-producing jet engines with General Electric, purchasing advanced MQ-9 drones, and is a central partner in the QUAD and Indo-Pacific strategy. On the ground, India is also the only major power standing up to China in Asia. That’s not freeloading—it’s frontline work.
Q9. Should peace in Ukraine depend on India?
Scapegoating won’t bring peace. India has consistently called for dialogue and diplomacy at the UN. Meanwhile, Europe still buys Russian gas, and the US still imports Russian uranium. India’s actions stayed within the global framework—and helped stop oil prices from spiralling further.
Q10. What’s the bottom line?
India didn’t bankroll Russia. What it did was:
- Stabilise global oil markets
- Keep fuel affordable for its citizens
- Prevent global inflation from spiralling
So, while the politics can get messy, the facts are simple: India has been more of a shock absorber than a troublemaker.