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

India's Oil Imports from Russia Surge Amid Global Tensions

New Delhi: Since the onset of the Ukraine conflict, India has imported approximately 144 billion euros worth of crude oil from Russia, according to a European think tank. The Kremlin's total revenue from global oil sales since February 2022 is estimated to be around 1 trillion euros.

Following China, which has been the largest purchaser of Russian oil, India ranks second, as reported by the Centre for Research on Energy and Clean Air (CREA).

China's purchases have reached 210.3 billion euros for oil, alongside 42.7 billion euros for coal and 40.6 billion euros for gas, totaling 293.7 billion euros since the war began.

In contrast, India's fossil fuel imports from Russia amount to 162.5 billion euros, with 143.88 billion euros for oil and 18.18 billion euros for coal.

The European Union has spent 218.1 billion euros on Russian fossil fuels, including 106.3 billion euros on oil, 3.5 billion euros on coal, and 108.2 billion euros on gas.

CREA highlighted that as of January 2026, Russia's earnings from fossil fuel sales continue to support ongoing conflict and humanitarian crises in Ukraine.

In response to the invasion, G7 nations and the EU have implemented sanctions and export controls against Russia. However, these measures lack a UN Security Council mandate, and several countries, including China, India, and others, have opted not to enforce these unilateral sanctions.

Despite sanctions, Russian oil continues to flow into the EU, particularly to Hungary and Slovakia, while countries that have imposed sanctions still contribute to Russian revenue by allowing refined products derived from Russian crude.

The report noted that Russia has successfully expanded its oil market and developed a shadow fleet to transport its oil, with EU imports accounting for one-fifth of the total revenue.

Since the EU's embargo on Russian crude oil in December 2022 and refined products in February 2023, imports have gradually decreased. Only Hungary and Slovakia have continued to import Russian oil through the Druzhba pipeline, while Russian gas remains unsanctioned.

India, now the third-largest oil importer globally, has become the leading buyer of discounted Russian crude as Western nations distanced themselves from Moscow post-invasion.

Historically dependent on Middle Eastern oil, India's imports from Russia surged as sanctions and diminished European demand made Russian oil available at significant discounts, increasing its share from less than 1% to nearly 40% of total crude imports.

Currently, Russia supplies about 35% of India's crude oil, although this share is expected to decline further due to new US sanctions on major Russian oil exporters, which will take effect on November 22, 2025.

As of now, Russia's share in Indian oil purchases has fallen below 25%, with major buyer Reliance Industries reducing its Russian oil imports.

India's daily purchases from non-sanctioned Russian entities were around 72.92 million euros at the start of January, a decrease from 130.49 million euros in late November and a peak of 189.07 million euros in July 2023.

Following the introduction of new US sanctions, companies like Reliance and Hindustan Petroleum Corporation Ltd have paused their Russian oil imports, while others like Indian Oil Corporation and Bharat Petroleum Corporation continue to source from non-sanctioned Russian entities.

Despite the EU's ban on imports of fuel derived from Russian oil, countries like Australia, Canada, and the US have not yet imposed similar restrictions on oil products made from Russian crude.

Reliance, which previously exported fuel to Europe, has announced it will cease using Russian oil for its export fuel production.