With tanker traffic through the Strait of Hormuz slowing sharply amid the escalating US-Israeli conflict with Iran, Indian refiners have begun tapping Russian crude aboard vessels floating off the country’s coast, government and industry sources said.
According to tanker-tracking data from commodity analytics firm Kpler, two tankers carrying about 1.4 million barrels of Russian Urals crude reached Paradip and Vadinar on March 5 and are scheduled to unload, offering some relief to Indian refiners as uncertainty surrounds Gulf shipments.
“India has never stopped buying Russian crude. Definitely the quantity has decreased, but we are also sourcing crude from around 40 countries today,” a senior government official said, highlighting the country’s diversification strategy.
The development signals a renewed interest in Russian barrels across India’s refining sector as companies reassess procurement strategies in the face of growing geopolitical uncertainty in West Asia. Tankers carrying Russian oil remain stationed in waters around India, offering immediate availability if shipments from the Middle East face delays.
Authorities in New Delhi are also reviewing the scope for stepping up crude shipments from Russia, even as India continues to diversify its supply basket across Africa, South America and other regions, according to officials familiar with the development.
The arrival of Urals oil cargoes comes at a time when tanker movement through the Strait of Hormuz — the route for nearly 20% of global oil supply — has slowed sharply since hostilities escalated. Ship-tracking data from Vortexa and Kpler indicate that around 300 oil tankers remain inside the Strait, with vessel traffic in and out of the chokepoint nearly halted following the outbreak of the conflict.
Financial Express had reported on March 3 that nearly 24 million barrels of Russian crude are currently floating in the Arabian Sea, creating a potential supply cushion if disruptions in Gulf shipping intensify.
“Kpler data shows roughly 25 million barrels of Russian crude currently floating in the Arabian Sea and the wider Indian Ocean, which could act as an immediate supply buffer for India as disruptions in the Strait of Hormuz impact traditional Middle Eastern crude flows,” said Nikhil Dubey, Senior Refining Analyst at Kpler.
Industry sources said Indian refiners are closely monitoring these cargoes.
“If disruptions from the Gulf persist, India is likely to buy more of the Russian crude already floating in the Arabian Sea as it offers immediate availability,” a source tracking tanker movements said.
Media reports also suggest that additional Russian cargoes could be redirected toward Asian buyers if Middle East shipments face prolonged delays, potentially increasing availability for refiners in India and China.
From Moderation to Necessity
India’s imports of Russian crude had moderated in recent months. In February, India imported around 1.1 million barrels per day (bpd) of Russian crude — almost half the 2025 peak of over 2 million bpd, according to Kpler tanker data.
The earlier moderation partly reflected refiners adjusting purchases amid evolving trade dynamics and efforts to diversify supply sources.
Moscow has also signalled readiness to meet additional Indian demand. Russian Deputy Prime Minister Alexander Novak said Russia stands ready to increase oil supplies to India and China if required. “Always ready,” Novak said when asked whether Russia plans to boost supplies amid the Middle East conflict, according to Russian news agency Interfax. “Our oil is in demand. If they buy, we will sell.” Global oil markets have already begun pricing in geopolitical risk.
Oil prices rose on Thursday, extending a rally as the escalating conflict disrupted supplies and shipping, prompting some producers to take measures to ensure supply security.
Brent crude rose $1.72, or 2.1%, to $83.12 per barrel by 1106 GMT, marking a fifth consecutive session of gains. US West Texas Intermediate (WTI) crude rose $1.95, or 2.6%, to $76.61.
Analysts say prolonged disruption in the Strait of Hormuz could tighten supply chains for Asian importers and push crude prices higher.
Logistical End-Run
Russian oil carries a logistical advantage in the current environment. Shipments from Russia’s Baltic and Black Sea ports reach India via the Suez Canal and the Red Sea, entering the Arabian Sea without passing through the Strait of Hormuz before arriving at major refining hubs such as Jamnagar, Vadinar and Paradip.
This routing flexibility, combined with the availability of cargoes already positioned near Indian waters, provides Indian refiners with immediate procurement options if Gulf shipments face delays.
Officials said refiners have been asked to closely monitor shipping developments and ensure adequate supply coverage as geopolitical tensions evolve.
With the Strait of Hormuz under strain and global oil markets on edge, Russian cargoes floating close to India could play an important role in helping refiners manage supply risks while the conflict continues to reshape global oil trade flows.