Full Breakdown
India’s Continued Import of Russian Oil Amid Sanctions
12/9/2025, 9:20:25 PM
Overview of India’s Russian Oil Imports
Since the onset of the war in Ukraine, India has significantly increased its imports of Russian crude oil, becoming the second-largest consumer of Russian oil after China. Despite sanctions imposed by the United States and Europe on major Russian oil companies, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin reaffirmed their commitment to uninterrupted fuel supplies during a recent bilateral summit in New Delhi. In October 2024, India’s purchases of Russian crude reached a historic high of $5.8 billion, although this figure dropped to $3.2 billion by December 2024.
Economic Pressures and Sanctions
The U.S. has exerted considerable pressure on India to halt its Russian oil purchases, with trade adviser Peter Navarro stating that India’s actions are effectively funding Moscow’s war efforts. In response to India's continued imports, the Trump administration doubled tariffs on Indian goods to 50%. Trump claimed that Modi assured him India would cease buying Russian oil, a statement Putin later dismissed, highlighting the U.S.'s own purchases of Russian nuclear fuel.
Fluctuations in Import Volumes
India's imports of Russian oil have experienced fluctuations, with a notable peak of 5 million barrels per day in November 2024, nearly matching the record high set in March 2025. However, projections indicate a decline to approximately 600,000 barrels per day in January 2025, the lowest level since early 2022. This drop is attributed to U.S. sanctions against Russian producers Rosneft and Lukoil, which account for around 60% of the Russian oil purchased by India.
Alternative Supply Channels
Despite sanctions, Indian refiners are exploring alternative channels to maintain their Russian oil supply. Companies such as Surgutneftegaz and Gazprom Neft, which face sectoral sanctions rather than complete bans, are potential sources. Additionally, Indian refiners have utilized a shadow fleet of older tankers operating under non-Western flags to bypass sanctions. Reports indicate that between January and September 2024, India imported 5.4 million tonnes of Russian oil using vessels sailing under false flags.
Criticism and Opposition
Ukrainian officials have criticized India's actions, arguing that the flow of Russian crude into India and subsequent exports of refined products to Europe undermine Western sanctions aimed at constraining Moscow's wartime revenue. Ukrainian lawmaker Oleksii Honcharenko emphasized that India's purchases have increased significantly since the invasion, which he believes aids Russia's war efforts.
Official Statements & Responses
During the summit, Modi expressed a commitment to strengthening economic cooperation with Russia, while Putin reiterated his readiness to ensure uninterrupted fuel supplies. India's foreign secretary indicated that energy decisions are based on evolving market dynamics, reflecting the pressures of sanctions and pricing.
What's Next for India-Russia Oil Trade?
Looking ahead, India's oil imports from Russia are expected to remain a contentious issue, with ongoing discussions about U.S. tariffs and sanctions. Analysts suggest that as new trading intermediaries emerge and discounts widen, Indian refiners may find ways to continue sourcing Russian oil while navigating geopolitical pressures. The future of this trade will depend on the evolving dynamics between India, Russia, and the U.S.
