India’s Russian Oil Imports Plummet 18% as Western Sanctions Reshape Energy Trade

India has significantly reduced its reliance on Russian crude oil. This major shift occurred throughout 2025 due to tightening Western sanctions. Imports from Russia fell by nearly 18% from January to October.

This strategic pivot marks a substantial change from previous years. Indian refiners are now turning to other global suppliers to avoid major compliance risks. The data comes from a detailed report by Rubix Data Sciences.

Sanctions Force a Strategic Recalculation for Refiners

The decline amounts to a 17.8% drop compared to the same period in 2024. Pressure intensified with new EU and US sanctions targeting Russian oil revenue. According to Reuters, expanded US secondary sanctions placed Indian buyers under greater scrutiny.

Key Russian oil giants Rosneft and Lukoil faced direct sanctions. These two firms supplied about 60% of Russia’s crude to India previously. Indian refiners, especially those focused on exports, had to rapidly scale back their purchases.

US and UAE Emerge as Major Alternative Suppliers

India is actively diversifying its energy sources to mitigate risk. Crude imports from the United States skyrocketed by 83.3% during the reporting period. Purchases from the United Arab Emirates also saw a solid 8.7% increase.

This move toward more “compliant” barrels prioritizes secure trade access over deep discounts. The change is also impacting India’s exports of refined fuels like diesel and jet fuel. Western buyers are avoiding products made from Russian-origin crude, even if processed in India.

India’s energy security strategy is now firmly guided by geopolitical compliance. The era of heavy dependence on discounted Russian oil is fading. This recalibration towards diverse, stable suppliers will likely define the market for years to come.

Thought you’d like to know

Why did India reduce Russian oil imports?

Indian refiners cut imports due to tightened Western sanctions. New US and EU rules increased compliance risks for anyone handling Russian crude. This made continuing large-scale purchases legally and financially difficult.

Which countries are benefiting from this shift?

The United States has become a primary beneficiary, with exports to India surging over 83%. The United Arab Emirates has also seen a notable increase in its shipments to the Indian market as a stable alternative.

How has this affected India’s fuel exports?

India’s exports of refined products to Western markets like the Netherlands declined sharply. This is because of EU rules banning fuels made from Russian oil. Exporters are now seeking new buyers in Asia and the Middle East.

Will India stop buying Russian oil completely?

A complete stop is unlikely in the immediate term. However, analysts expect the downward trend to continue. Russian oil’s share in India’s overall imports is predicted to keep shrinking.

What was the main trigger for this change in 2025?

The key trigger was the US decision to sanction major Russian oil firms Rosneft and Lukoil. Since these companies supplied most of India’s Russian crude, Indian buyers were forced to find other sources quickly.