India Slips to Third in Russian Fossil Fuel Imports

India fell to third place among buyers of Russian fossil fuels in December 2025 as private and state-owned refiners sharply reduced crude oil imports from Russia. This shift, highlighted by the Centre for Research on Energy and Clean Air (CREA), reflects the combined impact of sanctions, operational caution by refiners, and changing global trade dynamics in energy markets.

Decline in Import Value and Global Ranking

India’s total imports of Russian hydrocarbons stood at €2.3 billion in December, down from €3.3 billion in November. This decline pushed India below Turkiye, which imported €2.6 billion worth of Russian fossil fuels during the month. China retained its position as the largest buyer, accounting for 48 per cent of export revenues among the top five importers. The drop marked India’s lowest monthly Russian crude intake since the implementation of the G7-led price cap policy.

Composition of India’s Russian Energy Imports

Crude oil continued to dominate India’s purchases, accounting for 78 per cent of imports valued at €1.8 billion. Coal imports stood at €424 million, while oil products were limited to €82 million. Russia supplied about 25 per cent of India’s total crude oil imports in December, a notable decline from 35 per cent in the previous month, indicating a recalibration of sourcing strategies by Indian refiners.

Impact of Sanctions and Refinery-Level Cuts

The contraction in imports was led by Reliance Industries’ Jamnagar refinery, which halved its Russian crude intake in December. These cargoes were sourced from Rosneft and purchased before new US sanctions came into effect. State-owned refiners collectively reduced Russian imports by 15 per cent. Sanctions imposed by the United States on major Russian oil producers, including Rosneft and Lukoil, prompted several Indian refiners to pause or cut purchases, though some continued sourcing from non-sanctioned Russian entities.

Imporatnt Facts for Exams

• India became a major buyer of discounted Russian crude after February 2022.
• The G7 price cap aims to limit Russia’s oil revenues without disrupting supply.
• Russia’s ESPO and Urals grades dominate Asian crude trade flows.
• Energy sanctions often reshape trade routes rather than halt exports.

Exports of Refined Products and Broader Trends

Despite lower crude imports, refineries in India, Turkiye, and Brunei exported €943 million worth of oil products to sanctioning countries in December, with an estimated €274 million refined from Russian crude. Exports to the European Union and the United Kingdom declined sharply, while shipments to Australia and the United States increased. China remained the largest global buyer of Russian fossil fuels, while the European Union ranked fourth, with LNG forming a significant share of its imports.