Russia Offers To Bail Out India By Diverting 9.5 Mn Barrels Of Crude; Ready To Meet 40% Requirement

New Delhi: Moscow has offered to bail out India in case a major energy crisis emerges due to disruptions in the Strait of Hormuz.

According to an exclusive report by Reuters, Russia is ready to divert about 9.5 million barrels of crude in vessels near Indian waters. This oil can reach India within weeks, an industry source with direct knowledge told the news agency.

The source refused to disclose where the non‑Russian fleet cargoes were originally headed but said they could deliver to India within weeks, giving refiners rapid relief.

India’s crude stocks at the moment can cover only about 25 days of demand, while refiners hold similarly limited inventories of gasoil, gasoline ​and liquefied petroleum gas (LPG).

India is scouting for alternative supply sources to prepare for continuing conflict in the Gulf region beyond 10-15 days, a government source has been quoted as saying.

India, the third largest oil consumer in the world has been forced to look for alternatives as nearly 40% of its crude imports move through the Strait of Hormuz.

With Indian refiners processing about 5.6 million barrels of crude per day, Russia is ready to help India meet up to 40% of its requirements, the report says.

The import of crude from Russia by India has been a major issue over the last few months, after the US imposed an additional 25% tariffs on imports.
India brought down its crude imports from Russia gradually and it fell to about 1.1 million barrels per day in January, the lowest since November 2022. This pushed Moscow’s share of overall oil imports down to 21.2%, industry data showed. The source said the share climbed back to around 30% in ​February.

While Indian refiners are in regular contact with traders selling Russian crude, any increase in intake from Moscow would depend on guidance from the government as trade talks with ‌the US continue, refining sources said.

US president Donald Trump last month agreed to drop punitive tariffs levied on imports from India over its purchase of Russian oil, saying New Delhi had agreed to “stop buying Russian oil.”

India has not done so, insisting its strategy was to diversify supply in line with market conditions and “evolving international dynamics.”
The source said Russia was also ​ready to sell liquefied ⁠natural gas to India after top supplier Qatar halted production on Monday as the conflict widened.

Indian companies have reduced has supplies to some industrial customers to manage the shortfall, Reuters has reported.