In Win For Putin, India Buys 60 Million Barrels Of Russian Oil, As Refiners Increasingly Transact In Yuan, Dirham

Indian refiners have bought about 60 million barrels of Russian oil for delivery next month, which is set to ease some supply concerns as the Middle East war chokes flows.

Citing people familiar, Bloomberg reports that the cargoes were booked at premiums of $5 to $15 a barrel to Brent. The volume is similar to the amount of purchases for this month, but more than double than that for February, according to data intelligence firm Kpler.

The buying spree followed a US waiver that allowed India to take Russian oil that was already loaded onto vessels before March 5 to offset shortages caused by the effective closure of the Strait of Hormuz. The measure was subsequently expanded to include other countries and updated to allow purchases of crude already at sea before March 12.

India has bought ~60 million barrels of Russian oil in March, and already booked a similar amount for delivery in April.

The purchases are at a premium of $5-$15 a barrel **above** the Brent benchmark. And current prices, that’s worth >$6.5 billion for each month.

Putin wins.

— Javier Blas (@JavierBlas) March 25, 2026

The South Asian nation has been among the heaviest hit by the Hormuz blockade and the plunge in oil supply as it is heavily reliant on imported oil, and became a major buyer of discounted Russian crude following the invasion of Ukraine in early 2022. However, India sharply cut back purchases from late last year under US pressure, turning instead to barrels from Saudi Arabia and Iraq, much of which then became trapped inside the Persian Gulf after the outbreak of the war. 

Indian officials expect the US waiver to be extended as long as disruptions in Hormuz persist, the people said. Refiners such as Mangalore Refinery & Petrochemicals and Hindustan Mittal Energy, which had avoided Russian oil since December, have returned to the market, they said.

Separately, Bloomberg also reports that Indian refiners are increasingly settling purchases of Russian oil in alternative currencies, as they seek to reduce reliance on the dollar amid rising geopolitical tensions and shifts in US policy. Transactions are being carried out by depositing Indian rupees into special overseas bank accounts held by Russian sellers which are then being converted into UAE’s dirham or the Chinese yuan. The trades are being facilitated by Indian banks with limited offshore presence.

In addition to the dirham and yuan, firms are also considering the Singapore dollar and Hong Kong dollar, though transactions depend on individual banks’ comfort levels, one of the people added.

While the US earlier this month granted India a waiver to ramp up purchases of Russian oil, it is set to expire on April 11. Ahead of that deadline, some Russian oil firms are pushing for more durable arrangements, seeking payment in alternative currencies to limit exposure to shifting US policy.

In a note on Tuesday, Deutsche Bank said the conflict is testing the Petrodollar’s role as the currency for global oil trade, with one long-term consequence being a potential shift toward the yuan.

No matter what currency is used, Russia is reaping bumper profits on renewed demand and elevated prices for its oil. The Kremlin is earning the most from its crude exports since March 2022, shortly after Moscow’s troops poured into Ukraine.

In addition to buying more Russian oil, Indian processors are also looking elsewhere to diversify their supply as the war drags on. The country’s purchases of Venezuelan crude for April arrival are projected at 8 million barrels, the highest since October 2020, according to Kpler.