Since the start of the Ukraine war in February 2022, India has significantly increased its imports of Russian crude oil, spending a total of approximately ₹1.15 lakh crore (EUR 112.5 billion) on fossil fuels. According to the Centre for Research on Energy and Clean Air (CREA), India has bought crude oil valued at EUR 112.5 billion (USD 121.59 billion), alongside EUR 13.25 billion for coal. In total, India has imported fossil fuels worth EUR 205.84 billion from Russia as of March 2, 2025.

India's Shift to Russian Oil Amid Ukraine Conflict

India, traditionally reliant on the Middle East for its crude oil supplies, turned to Russia following the outbreak of war in Ukraine. This decision was largely driven by discounted prices on Russian crude, which became available after Western sanctions were imposed on Russia, curbing its ability to sell to European markets. As a result, Russia began offering significant discounts, with prices often USD 18-20 per barrel lower than global market rates. This made Russian oil an attractive option for India, which is over 85% dependent on imports for its crude oil needs.

Growth in Imports from Russia

Before the war, Russian oil accounted for less than 1% of India's total crude oil imports. However, by 2025, that figure soared to nearly 40% of India's total crude oil purchases. In February 2025, India imported about 1.48 million barrels per day (bpd) of Russian crude, although this was slightly lower than 1.67 million bpd in the previous month.

Indian refineries have processed this Russian crude into fuel products like petrol and diesel, which have been exported to countries like those in the European Union and G7 nations, despite the US's sanctions on Russian oil. The move to Russian crude has helped India secure cheaper oil, crucial for its economy, which is sensitive to oil price fluctuations.

China Leads in Fossil Fuel Purchases from Russia

While India has emerged as a major buyer of Russian crude, China remains the largest consumer of Russian fossil fuels, spending EUR 235 billion in total. This includes EUR 170 billion for oil, EUR 34.3 billion for coal, and EUR 30.5 billion for gas.

China's demand for energy and its economic size have positioned it as Russia's biggest buyer, with the global energy market significantly affected by these transactions.

Impact of Western Sanctions on Oil Trade

The sanctions imposed by the United States, European Union, and other nations have disrupted Russia's traditional energy trade routes. As a result, Russia has been forced to offer its oil at steep discounts to attract new buyers like India and China. However, these discounts have shrunk recently, reducing from USD 18-20 per barrel to below USD 3 per barrel. Despite this, Indian refiners continue to turn to Russian crude, as the discounts remain attractive compared to the global market.

Economic Implications for India

India's spending on crude oil imports has been rising steadily. In 2022-23, India spent approximately USD 232.7 billion on crude imports, and USD 234.3 billion in 2023-24. For the current fiscal year, India has already spent nearly USD 195.2 billion in the first 10 months, with Russian oil playing a significant role in meeting India's energy needs at a more affordable cost.

While India’s shift to Russian oil has helped reduce its energy costs, it also puts the country in a delicate position due to geopolitical implications and the impact of sanctions. With Russia still being the top oil supplier for India, India continues to face challenges in balancing its energy requirements with international pressure surrounding Russia’s actions in Ukraine.

Looking Ahead

The future of India's oil imports from Russia will likely depend on several factors, including global oil prices, sanction developments, and the ability of India to diversify its energy sources. The ongoing Ukraine conflict, along with the political and economic repercussions of dealing with a sanctioned state, makes India’s energy policy an area to watch in the coming years.

For now, Russia continues to provide India with a significant supply of crude oil, offering much-needed price relief, but this comes with growing political and economic complexities for the South Asian nation.