In the year after Russia invaded Ukraine (2022), India’s imports of Russian oil skyrocketed — from less than one percent to nearly 40% of its total crude intake, according to a report published by news agency PTI which cited estimates from the Centre for Research on Energy and Clean Air. By 2025, Russia supplied 36% of India’s oil, accounting for 87.4 million tonnes worth over $50 billion – up from under two percent before the war, per the official trade data.
Reports suggest Russia became India’s top oil supplier, surpassing traditional providers like Iraq, Saudi Arabia, and the UAE. In June 2025 alone, Russia accounted for 43.2% of India’s oil imports, which is an average of 2.08 million barrels per day, a media report said, citing vessel tracking data from analytics provider Kpler.
What Caused the Surge?
Western sanctions on Russian energy led to steep discounts — sometimes $18–20 per barrel cheaper than international benchmarks, which, experts say, “prompted the oil-reliant economy to adapt accordingly”. Over time, though, discount levels have reportedly shrunk to under $3 per barrel.
Analysts say New Delhi also appears to have capitalised on global reshuffling. While Europe pulled back from Russian crude, India remained open, “forging a strategic energy partnership with Moscow amid an international realignment.”
From India to Europe via Refineries
Indian refineries not only consumed Russian crude, but they also refined and exported it. In the third year of the war, G7+ countries imported €18 billion of oil products from Indian and Turkish plants engineered using Russian fuel, PTI report stated, citing the CREA calculations. About €9 billion out of that was refined from Russian crude, it said.
According to the report, EU members including the Netherlands, France and Italy were major buyers. Australia topped export figures, reportedly receiving €3.38 billion in refined fuel. This expanded demand even helped push up the global value of Russian oil by 25% in early 2024.
Why India’s Russian Oil Imports Have Alarmed US
US President Trump recently threatened a 25% tariff on Indian goods starting August 1, citing the country’s energy and defense trade with Russia. He warned of an additional, unspecified penalty for purchases tied to Moscow.
This in turn has seemingly left markets unsettled. Some analysts are tracking Trump’s tariff rhetoric closely, awaiting whether these measures will actually materialise. Indian refiners, meanwhile, are reportedly exploring alternatives, though state-owned players have halted Russian imports even as some private firms are continuing.
India’s Energy Diversification Strategy
Reports suggest India imports around 88% of its crude needs on an average. Noting that “India has diversified the sources of supply”, Energy Minister Hardeep Singh Puri recently mentioned that New Delhi sources crude from nearly 40 countries – up from 27, underlining the country’s ability to adapt and secure supply amid geopolitical uncertainties.
Industry analysts, however, have warned that replacing two million barrels per day of Russian oil would take at least three to four months or longer, for strategic and economic balancing.
