As conflict in the Middle East chokes the Strait of Hormuz—the transit route for 40% of India's crude—Russia has emerged as a critical energy buffer. Approximately 9.5 million barrels of Russian crude are currently stationed in nearby waters, ready to reach Indian refiners within weeks.
Despite recent U.S. pressure, Russia's supply share rebounded to 30% in February, up from a 44-month low of 19.3% in January. Moscow has signaled it can meet up to 40% of India’s total needs, providing a vital safety net as New Delhi navigates a volatile market.
The move follows a period of complex diplomacy. Last month, U.S. President Donald Trump lifted a 25% punitive tariff on Indian goods after claiming New Delhi would cease Russian oil purchases.
However, India has prioritized energy security, maintaining that its strategy remains flexible and market-driven. With domestic reserves covering only 25 days of demand, this Russian "floating storage" offers essential reassurance against global supply shocks.