India's Surging Russian Crude Imports: What It Means for Global Oil Markets

Record Russian Crude Imports by India

New Delhi: In July, India's imports of Russian crude oil reached unprecedented levels for the second month in a row, highlighting the nation's ongoing dependence on discounted Russian supplies despite increasing Western sanctions on Moscow's energy sector.

According to data from the Centre for Research on Energy and Clean Air (CREA), Indian buyers imported Russian crude valued at 5.5 billion euros in July, marking a 2.1% increase from June.

Crude oil represented 87% of India's total fossil fuel purchases from Russia during this period.

In June, the value of Russian crude imports stood at 4.5 billion euros, which accounted for 83% of the total 5.5 billion euros in fossil fuel imports from Russia.

It's important to note that the 2.1% increase refers to volume rather than value.

Since Russia's invasion of Ukraine in February 2022, India's reliance on Russian crude has intensified, as Western sanctions and the withdrawal of European buyers have led Moscow to offer significant discounts to Asian refiners.

In 2021, Russia supplied India with less than 100,000 barrels per day, which constituted about 2.5% of India's crude imports, according to the US Energy Information Administration. This figure surged to approximately 740,000 bpd in 2022 and nearly 1.8 million bpd in 2023, making Russia India's largest crude supplier with around 39% of total imports that year.

The trend of increasing dependence has continued. In July 2026, Indian refiners imported a record 2.8 million bpd of Russian crude, accounting for about 55.5% of total crude imports exceeding 5 million bpd, compared to an average of roughly 1.8 million bpd in 2024.

"In July 2026, India emerged as the second-largest buyer of Russian fossil fuels, importing a total of 6.4 billion euros worth of hydrocarbons. Crude oil made up 87% of these purchases, totaling 5.5 billion euros, while coal and oil products accounted for the remainder," CREA reported.

The increase in crude imports during July was primarily driven by a rise in shipments through smaller terminals, rather than through India's two largest Russian crude recipients, Jamnagar and Paradip.

Imports via HMEL Mundra surged by 58% from June, while volumes at Indian Oil's Vadinar SMPL terminal rose by 35%. Mumbai also saw a 37% increase in imports. In contrast, volumes at Jamnagar remained stable, and imports through Paradip dropped by 22%.

This shift in import dynamics indicates that India's record monthly intake was not reliant on increased volumes at its two largest terminals, as higher receipts at various other ports compensated for the decline at Paradip.

Since the onset of Russia's full-scale invasion of Ukraine, India has become the second-largest buyer of Russian crude, accounting for 37% of Russia's crude oil exports during this timeframe, trailing only China, which accounted for 50%.

The ongoing rise in Indian purchases occurs amid a decline in Russia's overall fossil fuel export revenues. In July, Russian crude export revenues remained relatively stable at 392 million euros per day, with a 21% monthly drop in pipeline crude earnings offset by a 7% increase in seaborne crude revenue.

The average price of Russia's Urals crude fell by 3% in July to USD 60.22 per barrel, which is still significantly above the USD 44.10 per barrel price cap imposed by the G7 and EU that took effect in February 2026.

India's role in the Russian oil trade extends beyond direct crude purchases. Indian refineries processing Russian crude also play a crucial role in exporting refined products to countries that have imposed sanctions on Russia.

In July, refineries in India, Turkey, Brunei, and Georgia that utilized Russian crude exported oil products worth a total of 633 million euros to sanctioning nations, with 214 million euros directed to the European Union, 184 million euros to Australia, and 234 million euros to the United States.

CREA estimated that 284 million euros of these exports were refined from Russian crude.

India was a significant source of these shipments, with five cargoes from Indian refineries using Russian crude arriving at EU ports in July, despite the bloc's ban on imports of oil products derived from Russian crude, which came into effect on January 21.

Shipments to the United States also originated from India's Jamnagar refinery, where Russian crude feedstock remains substantial. Over the three months leading up to July, Russian crude constituted about 35% of Jamnagar's feedstock, according to CREA.

The United States received refined-product shipments from Jamnagar in July, along with cargoes from Turkey's STAR refinery and Georgia's Kulevi refinery.

This data underscores India's increasingly vital role not only as a direct buyer of Russian crude but also as a refining and trading hub for Russian oil entering global markets in processed forms.

Simultaneously, India's purchases occur against a backdrop of declining Russian oil product exports. Russian oil product loadings fell by 23% in July to 4.7 million tonnes, marking their lowest level on record and less than half of the 9.6 million tonnes loaded in July 2025.

The stark contrast between record Indian crude purchases and the overall decline in Russian refined-product exports suggests that Russian crude continues to find a significant outlet in Asian refining markets, even as Moscow faces tighter constraints on refinery output and product exports.

For Russia, India's sustained demand represents a crucial source of export revenue at a time when earnings from other routes are under pressure. For Indian refiners, Russian crude remains a vital feedstock source, particularly for large export-oriented refining complexes capable of processing a diverse range of crude grades.