India's Record Russian Oil Imports Expose Dependence Risks Amid Middle East Turmoil

India's energy strategy is shifting in response to disruptions in Middle East oil supplies. The country has increased its purchases of Russian oil, buying a record 2.6 million barrels per day in June and July, more than twice the February low of around 1 million barrels a day.

This surge in Russian oil imports accounts for over half of India's total oil imports, which rose to around 5 million barrels per day, the highest level since the United States and Israel began bombing Iran in late February. The lack of an agreement between Washington and Tehran, along with shipping problems through the Strait of Hormuz, forced Indian buyers to increase their orders from Russia.

India's economy is heavily reliant on external supplies, importing over 90% of its oil and gas needs. Prime Minister Narendra Modi has emphasized the importance of energy security in his Independence Day address, also highlighting the need for alternative energy sources and strengthening the country's strategic reserves.

The authorities are considering storing part of India's strategic reserve in the United Arab Emirates, but a key challenge remains finding new oil suppliers and safer delivery routes. Vibhuti Garg, South Asia director at the Institute for Energy Economics and Financial Analysis, noted that India has oil reserves but lacks significant long-term reserves of liquefied gas.