As global energy dynamics shift in response to geopolitical tensions, India has emerged as a pivotal player in continuing to source oil from Russia, despite significant international sanctions. The complex web of economic interests and relationships has allowed India to leverage discounted Russian crude, drawing both scrutiny and strategic alliances in a rapidly changing energy landscape. This article delves into India’s evolving relationship with Russian oil, the pressures it faces, and how it navigates the challenges presented by Western sanctions.
India’s Consistent Purchases of Russian Oil Despite Sanctions
India’s commitment to buying Russian crude oil persists, even as sanctions imposed by the United States and Europe target major Russian oil firms. During a recent bilateral summit in New Delhi, Indian Prime Minister Narendra Modi and Russian President Vladimir Putin reaffirmed their energy partnership, with Putin expressing Russia’s readiness to ensure uninterrupted fuel shipments to India. This relationship sees India positioned as the second-largest consumer of Russian oil, following China, showcasing its critical role in the evolving global energy market.
Prior to the full-scale invasion of Ukraine in February 2022, Russian oil accounted for approximately 2.5 percent of India’s total oil imports. However, with the onset of the conflict, the U.S. and its allies began imposing numerous sanctions aimed at economically isolating Russia. This culminated in a staggering 21,000 sanctions targeting various sectors including energy and telecommunications. These moves significantly impacted the oil landscape, leading to the implementation of a price cap on Russian oil by the G7, EU, and Australia—initially set at per barrel and later adjusted to —making Russian oil increasingly attractive to nations like India and China.
In October 2024, India’s crude petroleum imports from Russia surged to a record high of .8 billion. However, following new U.S. sanctions against Russian corporate entities that went into effect in November 2024, imports experienced fluctuations. Despite a drop to .2 billion in December, a rebound occurred in January 2025, with imports valued at .6 billion.
The pressures for India to cease its purchases of Russian oil have been mounting. U.S. trade advisers have argued that India’s continued imports contribute to funding Russia’s operations in Ukraine. Simultaneously, U.S. President Donald Trump previously indicated that Modi had pledged to halt purchases, a claim met with skepticism by Putin, who pointed out that the U.S. continues to engage in imports of Russian nuclear fuel.
Kremlin spokesperson Dmitry Peskov emphasized India’s sovereign right to conduct foreign trade based on its economic interests, underlining the strategic importance of this relationship for both nations. India’s oil refining sector is vast and diverse, accommodating state-owned enterprises as well as privately owned companies with varied sourcing strategies.
As the U.S. imposes additional sanctions, the complexities of India’s oil import strategies come under scrutiny. Indian refiners have been actively reviewing their contracts, and while the sanctions have compelled a degree of scaling back, India is projected to continue importing substantial quantities of Russian oil while exploring alternative channels. For instance, India’s state refiners such as Indian Oil Corporation and private entities like Reliance and Nayara are adapting their strategies to navigate the sanction landscape.
Looking ahead, India is expected to turn to alternate sources for Russian oil, potentially including lesser-known companies unswayed by sanctions. Reports indicate ongoing imports carried by vessels using non-Western flags to circumvent restrictions, keeping the flow of Russian oil to India resilient. This strategy highlights India’s commitment to securing its energy needs while navigating the delicate international landscape shaped by geopolitical tensions.
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