India’s purchases of Russian oil have hit a record high as the conflict in Ukraine squeezes supply and makes it harder for India to shake its reliance on Russian oil. In June and July, India imported more than 2.6mn barrels of Russian oil a day, up from a low of 1mn b/d in February and accounting for more than half of the country’s crude imports. Overall imports of 5mn barrels daily are at their highest levels since Russia and Ukraine began bombing Ukraine at the end of February.

India had reduced Russian oil imports after Russia’s President accused India of funding Russia’s war machine last year. But as a peace deal remains elusive, India has returned to Russian oil for its needs. Trump granted waivers to allow the purchase of Russian oil to contain the impact of the Ukraine crisis.

India relies on imports for more than 90 per cent of its crude and gas needs, and the six-month conflict has exposed the world’s most populous nation’s energy security vulnerabilities. Prime Minister Modi called energy security a “need of the hour” in his Independence Day address, urging full strength behind alternative sources. Fossil fuels remain critical, with coal at nearly 60 per cent and oil at 28 per cent of energy supply, while nuclear accounts for just 1.6 per cent.

India is diversifying through nuclear sector reforms and increased LPG output, but experts say transition will take time. The country could hold 5.33mn metric tonnes of petroleum in strategic reserves, enough for 74 days of imports with commercial storage, and is exploring storage options abroad.