International
oi-Prakash KL
India’s oil trade with Russia has undergone a dramatic transformation over the past four years. What started as a small supply relationship turned into one of the biggest energy partnerships after the Ukraine war in 2022. Today, Russian crude remains a major part of India’s energy mix, though the price and volumes have changed due to sanctions, geopolitical tensions and recent conflicts in the Middle East.
How the Trade Began
India dramatically increased oil imports from Russia after the 2022 Ukraine war, making Russia a major supplier, but trade volumes and prices were subsequently affected by sanctions and Middle East tensions, shifting from discounts to higher costs.
Before 2022, India imported very little crude oil from Russia. Russian oil accounted for less than 2 per cent of India’s total crude imports. However, the situation changed dramatically after the Russia-Ukraine war began in February 2022. Western nations imposed sanctions on Russian energy exports, forcing Moscow to offer crude oil at heavy discounts to buyers in Asia.
India quickly stepped in to take advantage of the cheaper supply. Within months, Russian oil became one of India’s biggest sources of crude.
Rapid Rise in Purchases
India’s imports of Russian oil rose sharply between 2022 and 2025.
In 2022, India began increasing purchases and by the end of the year was importing around 900,000 barrels per day from Russia.
By 2023, imports surged further. At certain points during the year, India was buying over 2 million barrels per day, making it the largest buyer of seaborne Russian crude in the world.
In 2024, Russia supplied roughly 35 per cent of India’s crude imports, showing how quickly it had replaced traditional suppliers from the Middle East.
The trend continued into 2025, when India imported about 1.9 million barrels per day on average during several months, accounting for roughly 40 per cent of Russia’s seaborne oil exports.
Purchases Despite U.S. Pressure
India’s growing purchases of Russian crude drew criticism from the United States and several Western nations, which argued that oil revenues were helping fund Russia’s war in Ukraine.
Despite the pressure, India continued to buy Russian oil because the country depends heavily on imports for its energy needs. India is the world’s third-largest consumer and importer of crude oil, and it imports more than 85% of its total oil requirement.
For Indian refiners, Russian oil was attractive mainly because of the price advantage.
Discounts India Enjoyed
For most of 2022 and 2023, Russia sold crude to India at large discounts compared to global benchmark prices.
In some cases, Russian Urals crude was sold $10 to $15 cheaper per barrel than Brent crude. This helped Indian refiners save billions of dollars on import costs and allowed the government to keep fuel prices relatively stable.
At one point in early deals, India was reportedly paying around $47 to $60 per barrel (₹3,900 to ₹5,000) depending on shipping costs and contracts.
Reduction Under U.S. Pressure
However, geopolitical pressure and new sanctions began to affect the trade in 2025 and early 2026.
Indian refiners gradually reduced purchases, especially when Washington tightened restrictions on Russian oil companies and shipping networks.
By January 2026, India’s imports of Russian crude had dropped to about 1.1 million barrels per day, the lowest level since late 2022.
At that point, Russia’s share in India’s oil imports also fell significantly.
Situation Before the Iran Conflict
Even before the latest Middle East tensions, India had already started adjusting its oil import mix. Some Indian refiners slowed purchases of Russian crude while negotiating trade arrangements with the United States and exploring alternative suppliers from the Middle East and Africa.
However, the situation changed again after tensions escalated in the Gulf region.
Impact of the U.S.-Israel-Iran Crisis
The recent conflict involving Iran disrupted global oil shipments, especially through the Strait of Hormuz, one of the world’s most critical oil shipping routes.
With supply uncertainty rising, Indian refiners once again turned to Russian crude.
Reports show that India quickly increased imports to secure supply.
In March 2026, imports from Russia jumped by about 45-50 per cent reaching around 1.5 million barrels per day compared to about 1 million barrels per day in February.
US Waiver
Amid the global supply disruption, the United States temporarily eased sanctions and allowed certain Russian oil shipments already at sea to be delivered.
Following this waiver, Indian refiners moved quickly to buy stranded cargoes.
India reportedly purchased about 30 million barrels of Russian crude after the waiver was granted to stabilise supply during the crisis.
How Much India Pays Now
The price India pays for Russian oil has also changed dramatically.
Earlier, Russia sold crude to India at a deep discount. But due to the Middle East crisis and higher global prices, those discounts have largely disappeared.
Russian Urals crude recently traded around $89 per barrel (about ₹7,400) in global markets, according to Trading Economics data.
In some recent deals, traders even sold Russian crude to India at a premium of $4-$5 above Brent crude prices, something rarely seen earlier.
In oil trading, a “premium” means Russian Urals crude is now sold to India at a price above the Brent benchmark (e.g., $4-5 per barrel higher), rather than the prior discounts below Brent. This reflects strong demand outpacing supply, driven by Middle East tensions, flipping the usual dynamic where Russia offered cheaper oil to bypass sanctions
With Brent crude hovering near $100 per barrel (about ₹8,300) during the current crisis, Indian refiners may now be paying roughly $95 to $105 per barrel (₹7,900 to ₹8,700)depending on freight and delivery terms.
However, energy expert Amos Hochstein, a economic security official in the previous Biden administration, said in an interview that India is paying $90 a barrel now compared to $50, earlier.
“Putin was selling oil at just $50 a barrel. But now India has a waiver to buy Russian energy. Russia is telling India it will not give any more discounts because sanctions are gone and India needs Russia now. So they’re charging $90 a barrel,” Amos Hochstein said.
The Big Picture
India’s relationship with Russian oil has shifted from opportunistic buying to a strategic energy partnership.
Since 2022:
* Imports rose from **almost zero to more than 2 million barrels per day at peak**
* Russia became **India’s largest crude supplier for several years**
* The trade helped India save billions through discounted crude
* But geopolitical tensions and sanctions continue to influence volumes and prices
Even today, Russian oil remains a crucial part of India’s energy security, especially when global supply routes face disruptions.
