India’s Continued Purchase of Russian Oil Amidst Global Sanctions
India remains committed to buying Russian crude oil at lower prices, even though major Russian oil companies face sanctions from the United States and Europe. In a recent meeting in New Delhi, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin discussed ongoing fuel shipments to India, with Putin stating, “Russia is ready for uninterrupted shipments of fuel to India.”
India is currently the second-largest buyer of Russian oil, trailing only behind China, and has encountered significant pressure from the US to halt these purchases. Earlier this year, the US administration, under President Donald Trump, raised tariffs on Indian goods to 50% in part due to India’s oil imports from Russia.
The Rise of Russian Oil Imports in India
Before Russia’s invasion of Ukraine in February 2022, Russian oil made up approximately 2.5% of India’s total oil imports. When the war broke out, the US and its allies responded with sanctions aimed at crippling the Russian economy, imposing over 21,000 sanctions on various sectors, including energy.
In December 2022, a price cap of $60 per barrel on Russian oil was introduced by the G7 and the EU to limit Moscow’s resources for funding the war. This cap made Russian oil more appealing to countries like India and China, especially since Russia began offering oil at drastically reduced prices—sometimes as low as $35 per barrel.
Current Import Numbers
In October 2024, India’s imports of Russian crude reached a remarkable $5.8 billion. After the US imposed new sanctions on Russian individuals and companies, these numbers temporarily declined to $3.9 billion in November and $3.2 billion by December. However, in January 2025, Indian imports rebounded to $3.6 billion, showing fluctuating patterns since then.
US Pressure on India
This August, a White House trade adviser remarked that India’s imports of Russian oil were effectively funding the war in Ukraine and needed to stop. Additionally, the US increased tariffs on Indian goods as a consequence of continued Russian oil purchases. Trump claimed that Modi assured him during talks that India would cease buying oil from Russia, but this assertion was met with skepticism by Putin, who pointed out that the US itself still imports nuclear fuel from Russia.
Sanctions and Oil Import Strategy
The recent US sanctions aimed at Russian oil producers Rosneft and Lukoil were intended to disrupt their operations and came alongside new EU sanctions. These sanctions opened a brief window for Indian refiners to increase their purchases before the restrictions took effect. January saw a rise in Indian imports to 5 million barrels per day, nearing the record levels seen in earlier months.
The refining sector in India, which includes state-run and private companies, continues to adapt. Nayara Energy, linked closely to Russia, has ramped up its crude intake, even after facing sanctions.
Despite the challenges posed by sanctions, India is still on track to purchase around 600,000 barrels of Russian oil daily, significantly lower than previous highs but still ongoing.
Future of Russian Oil Imports for India
Rosneft and Lukoil are essential suppliers for India, making up about 60% of its Russian oil imports. To sustain its supply, India may rely on other companies not heavily impacted by sanctions, such as Surgutneftegaz. It could also utilize a fleet of older tankers under non-Western flags to navigate around existing sanctions.
According to a November report, between January and September of this year, India imported due to a discreet network of vessels traveling under false flags.
As India balances its energy needs with international pressures, its approach to Russian oil remains crucial in the ever-evolving geopolitical landscape.
