N※N

India Shifts to US Oil, Russia's Share Declines

  //media-entertainment.news-articles.net/content/ .. ia-shifts-to-us-oil-russia-s-share-declines.html
  Published in Media and Entertainment on Wednesday, February 11th 2026 at 22:44 GMT by ThePrint
      Locales: INDIA, UNITED STATES, RUSSIAN FEDERATION

New Delhi, February 12th, 2026 - India's energy strategy is undergoing a dramatic transformation, reflecting a complex interplay of geopolitical pressure, economic pragmatism, and a burgeoning domestic demand for oil. Recent data indicates a sustained and significant shift in India's oil import basket, with the United States emerging as a dominant supplier while Russia's market share continues to diminish. This realignment, initially sparked by pressures exerted during the Trump administration, now appears firmly entrenched and is reshaping India's relationships with key energy partners.

Initial reports from 2026 fiscal year assessments show US oil imports have surged by an impressive 40-50% compared to previous periods. This rise isn't merely a statistical anomaly; it represents a conscious effort by New Delhi to balance its energy security with its strategic alignment with Washington. Simultaneously, imports from Russia have experienced a noticeable decline, marking a departure from long-standing energy ties. While not a complete severing of relations, the reduction in Russian crude oil is substantial enough to signal a clear change in priorities.

The Origins of the Shift: US Pressure and Sanctions

The roots of this transformation lie in the US's persistent campaign to curtail Iran and Venezuela's oil exports. During the Trump presidency, India faced mounting pressure to reduce its reliance on these sources, which were subject to stringent US sanctions. India, traditionally a significant importer of Iranian and Venezuelan crude, found itself in a precarious position. Severing ties entirely would disrupt its energy supply and potentially damage its economy. However, ignoring US demands risked strained relations with a crucial strategic partner.

India adopted a delicate balancing act - gradually reducing its dependence on sanctioned nations while actively seeking alternative sources. The US, recognizing India's strategic importance, positioned itself to capitalize on the opportunity, offering a reliable and increasingly competitive supply of crude oil. This alignment wasn't simply transactional. It was underpinned by deepening diplomatic and military cooperation between the two nations, making energy trade a component of a broader strategic partnership.

Russia's Retreat and the Implications for India-Russia Ties

The decline in Russian oil imports, however, is the most intriguing aspect of this shift. For decades, Russia has been a steadfast and reliable energy supplier to India, often offering competitive pricing and flexible payment terms. The decrease isn't necessarily indicative of a complete breakdown in the India-Russia relationship - strategic cooperation in areas like defense continues to thrive. However, it demonstrates India's willingness to prioritize its evolving relationship with the US, even if it means sacrificing some of the benefits of its historical ties with Moscow.

Experts suggest several factors contribute to Russia's diminishing share. Increased competition from US shale oil, coupled with logistical challenges and fluctuating global prices, have made Russian crude less attractive. Furthermore, the West's efforts to limit Russia's revenue streams following the 2024 escalation in Eastern Europe have impacted Russia's ability to offer competitive deals. India, while continuing to engage with Russia, appears to be diversifying its sourcing to mitigate risk and ensure a stable energy supply.

A Diversified Basket: India's Long-Term Strategy

India's altered oil basket isn't solely about replacing Iranian, Venezuelan, and Russian oil with US crude. It's a broader strategy aimed at diversifying its energy sources and enhancing its energy security. New Delhi is actively exploring partnerships with other oil-producing nations in the Middle East, Africa, and Latin America. This diversification is crucial for a country with a rapidly growing economy and an increasing energy demand.

Looking ahead, the trend towards US oil dominance is likely to continue. However, India will likely maintain a diversified portfolio, balancing its strategic partnerships with economic realities. The country's energy policy will likely continue to be shaped by geopolitical factors, global market dynamics, and its commitment to sustainable energy sources. The next few years will be critical in determining whether India can successfully navigate these complex challenges and secure a reliable and affordable energy future.