Oil imports from Russia hit 38-month low
In December 2025, India’s crude oil imports from Russia plummeted to a 38-month low, with the total value of purchases falling to $2.71 billion. This represents a significant decline from the $3.72 billion recorded in November and is far below the peak of $5.87 billion reached in May 2024.
Key Statistics (December 2025)
- Market Share: Russian oil's share of India's total imports dropped to 24.9%, down from 34% in November.
- Volume: Imports fell to approximately 5.8 million tonnes (roughly 1.39 million barrels per day), the lowest monthly volume since early 2025.
- Top Buyers: While state-owned refiners like Indian Oil Corporation (IOC) continued some purchases from non-sanctioned entities, private giant Reliance Industries drastically reduced or halted its intake.
Primary Drivers of the Decline
- US Sanctions: The US Treasury Department imposed sanctions on Russia’s largest exporters, Rosneft and Lukoil, in late 2024, causing Indian refiners to become cautious.
- Geopolitical Pressure: Recent reports suggest the US Treasury Department has urged Moscow to agree to a ceasefire, using these sanctions as leverage.
- Trade Negotiations: There are ongoing claims from the Trump administration that India may stop Russian oil purchases entirely in exchange for the US reducing tariffs on Indian imports from 50% to 18%.
- Supply Diversification: India sourced crude from 19 different countries in December, increasing its U.S. oil imports by 31% year-on-year and turning to alternative suppliers in Africa (Libya) and West Asia.
While the Ministry of Commerce and Industry data confirms the drop, Indian officials maintain that energy decisions remain guided by national interest and market conditions rather than external political pressure.
Download Pdf
