Oil imports from Russia hit a 38-month low

Why in the News? 

In December 2025, India’s crude oil imports from Russia fell sharply to about $2.7 billion, marking the lowest level in 38 months. Russian oil’s share in India’s total crude basket dropped to less than 25% – down from ~34% in November 2025. At the same time, imports from the United States rose by nearly 31% year-on-year. This shift has gained international attention partly because former U.S. President Donald Trump claimed India would stop buying Russian oil as part of an interim trade deal that included reduced U.S. tariffs on Indian exports – claims that India has neither confirmed nor denied.

Background

• For years, India has been one of the largest importers of crude oil in the world and traditionally depended on Middle Eastern suppliers.
• After Russia invaded Ukraine in 2022, many Western countries imposed sanctions on Russian energy exports. India, however, boosted purchases of discounted Russian crude, making Russia a major supplier.
• Russian oil’s share of Indian crude imports rose significantly post-2022, at times accounting for 30-40% of total imports before dipping in late 2025.

Feature 

• Decline in Russian Imports: India’s Russian oil imports, in value and volume, have hit multi-year lows- the lowest since early 2025 – indicating a pronounced shift in sourcing patterns. Russian crude now accounts for under one-fourth of India’s total imports.
  
• Increase in U.S. Imports: Imports of crude from the United States have grown significantly compared to the previous year, both in dollar terms and tonnage, suggesting diversification of energy supply.
  
• Diversification of Supplier Base: India sourced crude from 19 countries in December 2025, up from 16 a year earlier, showing a strategic broadening of supply channels.
  
• Political Narrative: Internationally, the decline has been tied to discussions about U.S.–India trade deals and alleged conditions linking oil purchases to tariff reductions – claims New Delhi has not officially endorsed.
  

Challenges

Economic and Commercial Constraints

• Logistics and Cost: Shipping from the U.S. Gulf Coast or Venezuela is considerably more expensive due to longer transit distances, which increases costs.
• Pricing: Russian oil offered competitive pricing and discounts that were attractive for Indian refiners.

Technical and Refinery Compatibility

• Crude from different regions often has different grade characteristics. Indian refineries may require time and investment to adapt to new crude blends.

Strategic and Diplomatic Balance

• India has emphasised strategic autonomy in energy policy, seeking to avoid decisions dictated by global powers or geopolitical pressures.
• Completely halting Russian imports could strain long-standing ties with Moscow and affect broader diplomatic equations.

Way Forward

Pursue Balanced Diversification

• India is likely to continue sourcing energy from multiple countries to enhance resilience and reduce dependence on any single supplier. This includes increased purchases from the U.S., the Middle East, Africa, and other markets.

Enhance Strategic Energy Security

• Improving storage capacity, investing in alternative sources (like LNG and renewables), and negotiating long-term contracts can reduce vulnerability to external price or geopolitical shocks.

Refinery Upgradation

• Upgrading refineries for crude flexibility will allow processing of a wider variety of grades, further diversifying import sources cost-effectively.

Diplomatic Engagement

• Continued diplomatic engagement with Russia, the U.S., and Gulf nations can help balance commercial needs with geopolitical relationships.

Conclusion

India’s crude oil imports from Russia, hitting a 38-month low in December 2025 reflects a significant shift in its energy import strategy, driven by market conditions, geopolitical factors, and diversification goals. While there is international attention on political claims about trade deals and tariff negotiations, India’s official stance remains focused on energy security, market realities, and strategic autonomy.