Russian Crude Meant for China Redirected to India as Energy Crisis Deepens

News Desk: In a significant shift in global energy flows, at least seven tankers carrying Russian crude oil—originally bound for China—have altered course mid-voyage and are now heading toward India, as New Delhi moves swiftly to secure supplies amid escalating disruptions linked to the Iran conflict.

According to shipping data and industry reports, the rerouting comes at a critical time when instability around the Strait of Hormuz—one of the world’s most vital oil transit chokepoints—has begun to impact fuel flows to major import-dependent economies like India.

One such vessel, Aqua Titan, loaded at a Baltic Sea port in late January, has changed its destination and is now expected to dock at New Mangalore Port on March 21. The tanker was initially en route to China’s Rizhao port but reversed direction in mid-March, shortly after the United States granted India a temporary waiver to procure sanctioned Russian oil stranded at sea.

Similarly, the Suezmax-class tanker Zouzou N is now heading to Sikka Port on India’s western coast, with an estimated arrival on March 25.

India Steps Up Russian Crude Purchases

The diversion aligns with India’s aggressive push to shore up crude inventories. Following the U.S.-issued 30-day waiver, Indian refiners reportedly secured nearly 30 million barrels of Russian crude within a week—marking a sharp turnaround from a recent dip in imports.

The urgency stems from mounting risks in the Strait of Hormuz, a narrow maritime corridor that handles roughly 40–50% of India’s crude imports, along with substantial volumes of LPG and LNG. Ongoing tensions and disruptions in the region have raised concerns over supply continuity.

Supply Crunch and Domestic Impact

India, which imports nearly 90% of its crude oil requirements, has already begun to feel the ripple effects. Disruptions in LPG supply chains have been reported in major urban centres like Mumbai and Bengaluru, with some commercial establishments temporarily halting operations due to shortages.

To ease the pressure, multiple shipments are being fast-tracked. Three Indian-flagged tankers carrying crude and LPG have already reached domestic ports, while nearly 20 more vessels are awaiting clearance to transit through the Strait.

No Blanket Transit Deal with Iran

Amid the evolving situation, External Affairs Minister S. Jaishankar clarified that India does not have a “blanket arrangement” with Iran for the passage of Indian-flagged vessels, underscoring the complexities of navigating the crisis-hit region.

Short-Term Relief Expected

The diversion of Russian oil shipments is expected to provide immediate relief to India’s strained energy supply chain. Analysts believe the incoming cargoes will help stabilise fuel availability and cushion the impact of geopolitical disruptions—at least in the short term—while India recalibrates its import strategy in a volatile global market.