Jai Siya Ram

The core reasons India continues to rely heavily on Russian crude, and why many experts would agree that it’s not easily replaceable, are primarily economic and logistical:

1. The Cost Advantage (The Economic Driver)

• Steep Discounts: Since the start of the Ukraine conflict, Russia has offered significant discounts on its crude (like Urals crude) due to Western sanctions and price caps. India, which imports nearly 90% of its oil, has prioritized securing the cheapest supply to manage inflation and protect its consumers.
• Massive Savings: The ability to purchase millions of barrels per day at a discount has resulted in huge savings on India’s overall import bill, which is crucial for the country’s economic stability.

2. Strategic and Logistical Factors

• Energy Security and Diversification: India’s official stance is that it buys oil from wherever it gets the “best deal” to ensure national energy security. Before the Ukraine conflict, India was heavily reliant on Middle Eastern suppliers. The discounted Russian oil allowed India to diversify its sources, reducing its dependence on a single region.
• Refinery Suitability: Indian refineries are highly complex and well-equipped to process a variety of crude grades, including the Russian Urals crude. Switching large-scale contracts and logistics for different grades is not a simple, overnight process.
• The Price Cap Policy: India’s purchases have actually been argued by some (including former US officials) to help Western policy by keeping Russian oil on the market but at a discounted price, preventing global crude prices from soaring.

Context of the “US Offer”

The “US Offer” in this context refers to the pressure from Washington (particularly under the Trump administration, according to recent reports) to cease or drastically curb Russian oil purchases, often with the implicit suggestion of replacing it with US oil or facing tariffs.

• US Pressure: Recent reports indicate the US has imposed additional punitive tariffs (raising the total to 50% on certain Indian exports) to pressure New Delhi to reduce Russian oil imports.
• India’s Counter-Proposal: Indian officials have reportedly countered the US pressure by asking for permission to purchase oil from other currently sanctioned sources, such as Iran and Venezuela, as an offset if they must reduce Russian oil—highlighting that the issue is purely about securing affordable supply.

In summary, the statement “Russian Crude is not replaceable” is accurate from India’s perspective because replacing the volume and discount of Russian oil with alternatives (including US supply, which may not offer the same cost-benefit) would directly translate into higher costs for the Indian economy and its citizens.