India is determined to keep buying affordable crude oil from Russia, even amid heavy sanctions from the U.S. and Europe. Last week, Prime Minister Narendra Modi met with Russian President Vladimir Putin. Putin assured Modi that Russia would maintain steady fuel shipments to India.
India is the second-largest consumer of Russian oil, right after China. The U.S. is pushing India to halt these purchases. Earlier this year, President Trump raised tariffs on Indian goods to 50% largely due to this oil buying.
How Did India Start Buying So Much Oil from Russia?
Before Russia’s invasion of Ukraine in February 2022, only about 2.5% of India’s oil came from Russia. After the war began, sanctions from the U.S. and allies targeted various sectors, including energy, aiming to isolate Russia economically.
In December 2022, the G7 and others set a price cap of $60 on Russian oil to limit Russia’s funding for the war. This price cap made Russian oil even more appealing to countries like India and China. India benefited further as Russia sold oil at hefty discounts, sometimes as low as $35 a barrel.
How Much Oil Is India Buying?
In October 2024, India’s purchases from Russia peaked at $5.8 billion. However, following new U.S. sanctions that targeted Russian shipping, these numbers fluctuated. By the end of December 2024, imports dropped to $3.2 billion but bounced back to $3.6 billion in January 2025.
What Pressure Is India Facing?
U.S. officials have voiced concerns about India’s oil purchases, arguing they fund Russia’s war in Ukraine. In August, trade adviser Peter Navarro wrote in the Financial Times that India was “acting as a global clearinghouse” for Russian oil.
Trump claimed Modi had promised to stop buying oil from Russia, but Putin countered that the U.S. itself still buys Russian nuclear fuel—a point of contention that many on social media have echoed, highlighting a potential double standard.
Why Are Indian Imports Spiking?
The U.S. imposed sanctions on major Russian producers like Rosneft and Lukoil, effective on November 21, 2025. As a result, Indian refiners rushed to secure Russian oil before the restrictions set in. By early November, India’s imports surged, with daily volumes peaking at 5 million barrels, nearing past highs.
India’s refining landscape includes state-owned and private companies, some of which have ramped up their Russian oil intake. Notably, Nayara Energy, a Russia-majority-owned refiner, has been increasing its purchases since the European sanctions in July.
How Will India Continue to Import Russian Oil?
Rosneft and Lukoil play crucial roles, making up around 60% of India’s Russian oil imports. To sustain this flow, India may seek alternatives, such as lesser-known companies like Surgutneftegaz, which have been less impacted by sanctions.
Additionally, India has explored using aging tankers under non-Western flags to transport oil, a tactic that can bypass some of the sanctions. Reports indicate that between January and September 2025, India used about 30 ships sailing under false flags to import 5.4 million tonnes of Russian oil.
In this complex geopolitical landscape, India’s approach to Russian oil highlights its ongoing economic interests despite international pressures.
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