India's Russian Oil Imports Driven by West Asia Supply Disruptions

India's increased Russian crude imports are being driven by supply disruptions in West Asia rather than discounts, according to a recent report. The Axis Bank Economic Research report showed that India has imported an average of 60 million barrels per month of Russian crude since the start of the US-Iran war, compared to 46 million barrels a month during FY23-26.

Since March 2022, Russia's share in India's imported crude basket jumped from 0% to 30%, likely due to discounts. However, the additional 1 million barrel per day since March 2026 'can't be explained by price dynamics alone', according to the report.

The report argued that the average discount on Russian crude vs. West Asia has been stable at $3-5/bbl since 2023, and Russia's share of Indian crude imports rose despite premiums of up to $7/bbl.