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To buy crude oil from Russia, India has to bear the burden of heavy tariffs, which the US has imposed as a penalty. Meanwhile, a report claimed that India is getting an annual benefit of only two and a half billion dollars by purchasing crude oil from Russia at a cheaper price. It was also claimed in the report that the matter of big profits in the media is not, but things are being exaggerated in the media.
The brokerage company CLSA released a report on Thursday (August 28, 2025) saying that it was estimated earlier that India would have an annual profit of $ 10 to 25 billion on buying oil from Russia, reality is very different from it, only two and a half billion dollars will be profitable. According to the report, ‘India has been exaggerated in the media. According to our estimate, this benefit is only 0.06 percent of India’s GDP (GDP) $ 2.5 billion.
The CLSA said that there is a huge concession in showing a price limit of $ 60 per barrel on Russian oil, but in fact, due to many restrictions like insurance, shipping and rebel, India is very low.
The report states that the average discount on Russian oil in FY 2023-24 was $ 8.5 per barrel which has come down to three-five dollars in 2024-25 and $ 1.5 per barrel in recent months. The CLSA has warned that if India stops importing Russian oil, it will disrupt the global supply and the price of crude oil can reach $ 90 to $ 100 per barrel, which is expected to increase global inflation.
The report also said that Indian oil companies also have to mix better quality and expensive crude oil due to high imports of dandruff. Due to this, there is no clear benefit in the average import price. The report says that Russian oil imports are not only necessary for India from a strategic point of view, but it is also helpful in maintaining control of crude oil prices in the global market.
After the commencement of Russia-Ukraine War in February 2022, there has been a boom in the matter of oil imports from Russia to India. In FY 2024-25, India imported 36 percent of the total 54 lakh barrels of oil imports i.e. 18 lakh barrels per day from Russia. This figure was less than one percent before the Ukraine War.
Russia started giving huge discounts on oil after a ban on oil sale from Western countries, which ensured energy supply to India at a cheap rate. However, some countries including the US criticized India and described it as profiteering. The US government has increased the duty on import of Indian products from August 27 to 50 percent to continue the purchase of cheap oil from Russia.
