In a big blow to the US and the Trump administration, India ordered 1.7 million barrels of oil from its BRICS counterpart, Russia, in November, despite sanctions, and the amount is up 3.4% from October. In addition, 1.2 million barrels of oil were shipped from Russia to India in December. The procurement comes despite India being under pressure from the US to stop buying Russian oil.
India’s State-run refiners, such as Indian Oil Corp and Bharat Petroleum, are buying Russian crude oil. Hindustan Petroleum is also in talks with Russia and could resume oil purchases from January 2026. BRICS members India and Russia are not bowing down to US sanctions and continuing the purchases.
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BRICS and the US Oil Dilemma
BRICS is receiving oil at discounted prices from Russia and saving millions in foreign exchange rates. The settlements are happening in local currencies such as the rupee and the ruble. The Chinese yuan is also being used for oil deals with China. The US dollar is being phased out, thanks to the sanctions from the White House.
While BRICS is helping Russia in sustaining its economy, the US thinks otherwise. American authorities gave a statement that sanctions are working against the Russian economy. “Thanks to President Trump’s leadership, Russia has been forced to accept deep discounts and fewer buyers for its oil. These pressures are limiting the Kremlin’s revenues and increasing the financial strain of sustaining its war,” a US official said.
India had previously saved close to $7 billion in foreign exchange rates and benefited from the US sanctions on Russia. The sanctions have mostly turned out to be a blessing in disguise for BRICS members. It also helped them advance the de-dollarization agenda while saving big on exchange rates. Despite the Trump administration’s trying to clamp down on oil sales, it has yet to be successful.
