India-Russia Oil Trade: The scrutiny around the Russian crude imports by countries like India is esclating as Moscow denies to oblige to US President Donald Trump for a ceasefire in Ukraine. POTUS on Wednesday announced a 25% tariff on Indian goods effective August 1, warning of an additional, unspecified “penalty” tied to India’s ongoing oild and defence trade with Russia.
Sanctions On Russian Crude
The decison to impose 25% tariff on India exports to US follows mounting pressure from both US and European Union. Earlier in July, the EU introduced a sweeping sanctions package that prohibits fuel imports into Europe if the fuel is derived from Russian crude processed in third countries like India. Additionally, the EU sanctioned Rosneft-backed Nayara Energy, which operates the 20-million-tonne Vadinar refinery in Gujarat.
The increased scrutiny coincides with US lawmakers proposing a controversial bill that seeks to impose tariffs of up to 500% on nations continuing to engage in trade with Russia. NATO Secretary General Mark Rutte also warned that countries such as India, China, and Brazil could be severely impacted by secondary sanctions unless they reduce business ties with Moscow.
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Why is India Buying Russian Oil?
India has defended its continued purchase of Russian crude, citing critical energy security needs. The country relies on imports for about 88% of its crude oil requirements, and Russia has emerged as a dominant supplier since the Ukraine war. Despite Western criticism, Indian oil imports from Russia have remained steady, because of large discounts.
“India is willing to buy oil from whoever offers a good price, as long as the oil is not under sanctions,” Indian officials have repeatedly said.
How Much Russian Oil India Imports?
In the financial year 2024–25, India imported 87.4 million tonnes of Russian oil, accounting for nearly 36% of its total oil imports (244 million tonnes). This marked a dramatic rise from pre-war levels, when Russian crude comprised less than 2% of India’s oil basket. The value of these imports exceeded $50 billion, over one-third of India’s total crude bill of $143 billion.
June 2025 saw Russian oil imports to India hit an 11-month high, further cementing its importance in New Delhi’s energy mix.
Where Can India Buy Oil if Not From Russia?
Now that US has imposed 25% tarif, India may be forced to cut Russian imports and turn to traditional West Asian suppliers including Iraq, Saudi Arabia, and the UAE. This raises import costs for India by several dollars per barrel.
India is also looking to Africa, Latin America, and the US to reduce dependence on any single source and bolster energy resilience.
According to reports, Indian refiners have started sourcing oil from non-traditional suppliers. State-backed Mangalore Refinery & Petrochemicals Ltd. recently secured 1.3 million barrels of Azeri crude for delivery between late August and September. Traders noted that the purchase was “prompter-than-usual,” diverging from the company’s usual buying habits.
Similarly, Hindustan Petroleum Corp. has procured Nigerian crude grades including Bonny Light, Egina, and Qua Iboe. Meanwhile, Reliance Industries Ltd. which is India’s largest private-sector refiner, has diversified its slate by acquiring Murban, a premium light crude from Abu Dhabi.
“Though Russia remains a central player in India’s energy mix, the latest moves suggest that refiners are hedging their bets amid increasing geopolitical risk and mounting pressure from Western sanctions,” Bloomberg reported.
Also Read: Explained: How Much Russian Oil Does India Buy and What It Means Now
