How India plans to continue buying Russian oil despite sanctions

India plans to proceed buying inexpensive crude lipid from Russia, contempt sanctions imposed connected large Russian lipid companies by the United States and Europe.

Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin for the Russia-India yearly bilateral summit successful New Delhi past week, during which Putin said: “Russia is acceptable for uninterrupted shipments of substance to India.”

India is the second-largest user of Russian lipid aft China and is facing aggravated unit from the US to halt buying it. Earlier this year, the medication of US President Donald Trump doubled commercialized tariffs connected Indian goods to 50 percent, successful portion due to the fact that of this issue, Trump said astatine the time.

Here is what we cognize astir India’s imports of Russian oil, and however New Delhi has managed to support its petroleum purchases from Moscow afloat successful spite of sanctions and pressure.

How did India go specified a large user of Russian oil?

In 2021, anterior to Russia’s full-scale penetration of Ukraine successful February 2022, Russian lipid constituted astir 2.5 percent of India’s full lipid imports, according to figures from the US Energy Information Administration published successful February this year.

After the warfare began, Europe and the US began placing sanctions connected Russian companies to economically isolate Moscow.

Overall, since the opening of the war, the US and its allies person imposed much than 21,000 sanctions connected Russia, targeting individuals, media organisations, the military, and sectors that see energy, aviation, shipbuilding and telecommunications.

Crucially, however, successful December 2022, the Group of Seven (G7), the European Union and Australia placed a cap connected the price of Russian lipid astatine $60 per barrel, ostensibly to trim Russia’s quality to money its warfare successful Ukraine. The headdress was aboriginal reduced to astir $48 by the EU and the United Kingdom. This made Russian lipid much charismatic to purchasers, peculiarly India and China. Russia has sold crude lipid to India astatine steeply discounted rates, dropping arsenic debased arsenic $35 per tube successful March 2022.

By contrast, Brent crude lipid is presently trading astatine astir $62.50 per barrel.

How overmuch lipid is India buying from Russia?

In October 2024, India’s purchases of Russian crude petroleum reached a historical precocious of $5.8bn.

At the extremity of that month, the US imposed caller sanctions connected hundreds of Russian individuals and entities. These see Russian shipowners, vessels and traders progressive successful shipping Russian crude.

In November 2024, India’s crude petroleum imports from Russia dropped to $3.9bn and by December 2024, India was importing adjacent little lipid from Russia, worthy $3.2bn.

However, successful January 2025, Indian imports of Russian lipid from Russia bounced backmost up to $3.6bn. Since then, volumes of imports person fluctuated.

What unit is India facing to halt buying Russian oil?

In August this year, White House commercialized advisor Peter Navarro said India’s purchases of Russian crude lipid were funding Moscow’s warfare successful Ukraine and indispensable stop.

“India acts arsenic a planetary clearinghouse for Russian oil, converting embargoed crude into high-value exports portion giving Moscow the dollars it needs,” Navarro wrote successful an sentiment portion published successful the Financial Times.

In August, Washington besides doubled commercialized tariffs connected Indian goods to 50 percent arsenic a punishment for India buying Russian oil.

In October, Trump claimed that Modi had pledged to halt buying lipid from Russia.

“So I was not blessed that India was buying oil, and helium assured maine contiguous that they volition not beryllium buying lipid from Russia,” Trump told reporters during a White House event.

“That’s a large step. Now we’re going to get China to bash the aforesaid thing.”

But during an interrogation with Indian broadcasters during the Russia-India yearly bilateral summit connected December 4, Putin scoffed astatine Trump’s claim. “The United States itself inactive buys atomic substance from america for its ain atomic powerfulness plants,” helium said. In 2023, US imports of enriched uranium from Russia deed a grounds precocious successful implicit a decade, worthy astir $1.2bn.

If the US has the close to bargain Russian fuel, helium added, India should bask “the aforesaid privilege”.

Kremlin spokesperson Dmitry Peskov repeated this sentiment during a telephone with reporters connected Monday this week, erstwhile helium said: “India, arsenic a sovereign state, conducts overseas commercialized operations and purchases vigor resources wherever it is beneficial for India, and arsenic acold arsenic we understand, our Indian partners volition proceed this argumentation to guarantee their economical interests.”

Why person sanctions connected Russian lipid caused a spike successful Indian imports?

On October 22 this year, Trump imposed US sanctions connected 2 of Russia’s largest lipid producers, Rosneft and Lukoil. It was the archetypal clip during his 2nd word arsenic US president that Washington had imposed sanctions related to Russia’s warfare successful Ukraine.

The US sanctions came the aforesaid time that the EU approved its ain 19th bundle of sanctions connected Russia, and 1 week aft the UK besides sanctioned Rosneft and Lukoil.

The US sanctions were acceptable to travel into effect connected November 21, aft which purchases from US-sanctioned entities Rosneft and Lukoil would beryllium restricted, giving Indian importers a model to ramp up purchases up of the deadline.

One time aft the US sanctions were announced, authorities refiners successful India, including Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, began reviewing their Russian lipid purchases, Reuters reported, citing an unnamed root with nonstop cognition of the matter.

In October, India imported $3.55bn worthy of crude petroleum from Russia, according to figures from the Ministry of Commerce and Industry, reported successful Indian media. While this was not arsenic precocious arsenic the $5.8bn worth of crude petroleum India purchased from Russia successful October 2024, it showed that India was inactive buying much lipid than it was earlier the warfare successful Ukraine broke out.

In aboriginal November, however, India ramped up its imports of Russian oil. India’s crude lipid imports accrued by 220,000 barrels per day, reaching 5 million barrels per day, according to vigor marketplace quality steadfast Vortexa. This was a seasonal peak, astir matching the grounds precocious of 5.05 million barrels per time acceptable successful March 2025.

India’s refining assemblage consists of 3 main categories of operators: National Oil Companies (NOCs), which are state‑owned, nationalist assemblage refiners; Reliance Industries, which is privately owned, with a divers crude sourcing strategy; and Nayara Energy, a Russian‑majority‑owned backstage refiner.

The EU sanctioned Nayara successful July 2025 implicit its links to Russia. Since then, however, it has doubled down connected buying exclusively Russian crude, importantly expanding its intake.

With sanctions already successful place, the institution appears to spot small downside successful deepening its reliance connected Russian oil. By precocious October, Nayara had ramped up crude processing astatine its Vadinar Refinery successful Gujarat to 90-93 percent of capacity, Reuters reported, citing unnamed sources. That fell to 70 to 80 percent of capableness successful July pursuing the EU sanctions.

Overall, however, it is wide that India is continuing to import Russian oil. While sanctions person led to India scaling backmost connected Russian lipid purchases to immoderate degree, New Delhi is inactive projected to bargain 600,000 barrels of lipid per time successful January. This whitethorn beryllium good beneath the 1.6 cardinal to 1.8 cardinal barrels it has been importing successful caller months, but not zero, Bloomberg reported.

How volition India proceed to import Russian oil?

Rosneft and Lukoil relationship for astir 60 percent of the Russian lipid purchased by India, Reuters reported successful October, citing Prashant Vashisht, vice president astatine ICRA Ltd, an Indian recognition standing agency. Citing Russian authorities agencies, S&P Global said Rosneft accounts for astir fractional of each Russian lipid accumulation and 6 percent of planetary output.

India, therefore, volition person to crook to different sources for its Russian lipid imports. This is apt to see companies specified arsenic Surgutneftegaz, which was ne'er afloat affected by sanctions.

India has besides purchased lipid from Gazprom Neft, which faces sectoral sanctions alternatively than being afloat sanctioned. This means that the US has enactment limits connected immoderate activities, but has not wholly banned doing concern with the company.

India could besides acquisition Russian lipid via a shadow fleet of older tankers utilizing non-Western security and flags, which tin often bypass sanctions.

Between January and September this year, India imported 5.4 cardinal tonnes of Russian lipid carried by 30 vessels sailing nether mendacious flags, according to a study published successful November by the European deliberation vessel the Centre for Research connected Energy and Clean Air (CREA).