India's crude oil imports from Russia strengthened in the first half of October, reversing a three-month slide in arrivals seen during July-September as refineries were back on full stream to meet festive demand, according to ship tracking data.
India, the world's third-largest oil consumer, spent 2.5 billion euro on buying crude oil from Russia in September, 14 per cent less than the previous month, a European think tank said. India remained the second-largest buyer of Russian fossil fuels in September behind China, according to the Centre for Research on Energy and Clean Air (CREA).
New Delhi 'will have to take a call which supply source suits us the best,' the finance minister said, pointing out that crude oil accounts for the bulk of India's foreign exchange spend.
The United States has announced it will not renew sanctions exemptions for the purchase of Russian and Iranian oil, ending a 30-day waiver that allowed some countries, including India, to continue importing Russian oil despite sanctions related to the Ukraine war.
MEA spokesperson Randhir Jaiswal said India's energy decisions are guided by national interest.
Indian stock market investors are closely monitoring crude oil prices, geopolitical developments in West Asia, and the implications of the US Sanctioning Russia and Iran Act, which could impose tariffs on countries, including India, that purchase Russian crude.
External Affairs Minister S Jaishankar defends India's purchase of Russian oil, stating it is not the largest purchaser and that the US had previously supported such actions to stabilize energy markets. He also addresses concerns about tariffs and trade relations with the US.
India's imports of crude oil from Russia touched a new high of 1.64 million barrels per day in March and is now double of the purchases from Iraq - the nation's traditional top oil supplier. But the purchases appear to have plateaued as growth has slowed. Russia continued to be the single largest supplier of crude oil, which is converted into petrol and diesel at refineries, for a sixth straight month by supplying more than one-third of all oil India imported, according to energy cargo tracker Vortexa.
"India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits," Trump said in a social media post on Monday.
India's crude oil imports from Russia fell for a second straight month in January to its lowest in 12 months but the nation's insatiable appetite for Russian crude remains for the long term, according to data from energy cargo tracker and industry officials. Russia supplied 1.2 million barrels per day of crude oil to India in January, down from 1.32 million barrels in December and 1.62 million barrels in November 2023, according to data from energy cargo tracker Vortexa. Russia however continues to remain India's top oil supplier, accounting for a little less than a quarter of 4.91 million barrels a day of oil that the world's third largest energy consumer imported in January.
Reliance Industries Ltd, India's largest buyer of Russian oil and most impacted by the latest US sanctions, on Friday said it will comply with all applicable restrictions and will adjust its refinery operations to meet compliance requirements.
US President Donald Trump accused China and India of being the "primary funders" of the Ukraine war by continuing to purchase Russian oil during his address to the UN General Assembly. He also criticized NATO countries for not cutting off Russian energy.
President Donald Trump is set to sign the Sanctioning Russia and Iran Act, which includes tariffs on countries buying Russian oil and gas, such as India. India has voiced concerns over the potential impact on its ties with the US and the global energy market.
Indian companies, however, are now paying a premium of $6-$7 a barrel for Russian oil, compared with discounts of $8-$10 a barrel before the start of the conflict.
India's purchase of Russian oil has risen to 2 million barrels per day in August, as refiners continue to prioritise economic considerations in their sourcing decisions. As much as 38 per cent out of an estimated 5.2 million barrels per day of crude oil imported in the first half of August came from Russia, according to global real-time data and analytics provider Kpler.
An influential US lawmaker claims his visit to India helped catalyze "early signals" that New Delhi may reduce its imports of Russian oil, a step he described as "meaningful" in weakening Moscow's ability to fund its war in Ukraine.
What is more surprising is that a surge in Russian oil supplies has come after the G7 imposed stringent sanctions on Moscow.
Trump has enacted a new law imposing significant sanctions on Russia and Iran, which could lead to tariffs of up to 100% on major energy importers like India and China.
US Secretary of State Marco Rubio has said that the Trump administration hopes it can fix the "measures" it has taken with regard to India for its purchases of Russian oil.
Reliance Industries Ltd has consistently remained compliant with international sanctions and is expected to adhere to upcoming measures on Russian oil, analysts said, estimating that oil sourced from Russia contributes just 2.1 per cent to its consolidated EBITDA. Reliance operates the world's largest single location refining complex, with more than half of the capacity exclusively dedicated for exports.
The wide-ranging sanctions imposed by the US on the Russian oil sector have started to dent near-term oil flows to India with state-owned Bharat Petroleum Corporation Ltd (BPCL) saying not enough cargoes are available for March.
US President Donald Trump is expected to sign the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 later on Friday (local time). A White House official confirmed the development to ANI without revealing further details.
'It is a blunt and dangerous attempt to pressure India to sign BTA on one-sided terms.'
The Kremlin states it has not received confirmation from India regarding a halt to Russian oil purchases, following claims made by former US President Donald Trump. Russia affirms its commitment to strengthening relations with India.
Reliance Industries Ltd on Thursday said it has halted the use of Russian crude at its export-only refinery in Jamnagar, Gujarat, as the company moves to comply with European Union sanctions. Reliance is India's largest buyer of Russian oil, which it processes and turns into fuel, such as petrol and diesel, at its giant oil refining complex at Jamnagar.
US President Donald Trump on Wednesday slapped an additional 25 per cent tariff on goods coming from India as penalty for New Delhi's continued buying of Russian oil.
The US House of Representatives has advanced a bill that would empower President Donald Trump to impose 100 per cent tariffs on countries, including India, that purchase oil and gas from Russia, and also extend sanctions on Iran. The legislation, which previously passed the Senate, aims to curb Russia's energy revenue amidst the Ukraine conflict.
Chinese President Xi Jinping is set to visit the United States from September 23 to 25 for summit talks with US President Donald Trump, with discussions expected to cover critical economic and trade issues, including AI, and the recently signed US sanctions law targeting countries buying Russian oil and gas.
Indian-American Congressman Raja Krishnamoorthi voted in favour of a Russia sanctions act in the US House, diverging from his Democratic party and other Indian-American lawmakers. The bill, which passed, imposes tariffs on Russian oil and gas buyers, potentially impacting India and China, and exempts US uranium purchases from Russia.
India responds to US President Trump's claim that PM Modi assured him of halting Russian oil imports, stating it is diversifying energy sources to meet market conditions and safeguard consumer interests.
External Affairs Minister S Jaishankar stated that India is in continuous dialogue with both Ukraine and Russia, seeking ideas and suggestions to mitigate or cease the ongoing conflict. Following his visit to Kyiv, Jaishankar reiterated India's stance that the war must end through dialogue and diplomacy, emphasising that trade decisions like oil purchases are not the solution to the conflict.
On Friday, during the weekly media briefing, MEA spokesperson Randhir Jaiswal, when asked about media reports that some Indian oil companies have stopped taking oil from Russia, had said India has made clear its approach on the issue.
The trade relationship between India and the United States has been strained by the imposition of 25% tariff by the US on Indian goods.
Top US and Chinese officials, including Vice Premier He Lifeng and Treasury Secretary Scott Bessent, held "candid, in-depth and constructive" talks in New York on economic and trade issues, with a specific focus on artificial intelligence. These discussions precede Chinese President Xi Jinping's anticipated visit to Washington and occur amidst new US sanctions targeting countries purchasing Russian oil and gas, and the US unveiling an "AI Force."
India, the world's third largest oil consuming and importing nation, spent 112.5 billion euro (about Rs 1.5 lakh crore) on buying crude oil from Russia since the start of the Ukraine war, a European think tank said on Thursday. The Centre for Research on Energy and Clean Air (CREA) released a report on payments to Russia for fossil fuels since February 24, 2022. "According to our estimates, since the beginning of the war, Russia earned EUR 835 billion in revenue from fossil fuel exports," it said.
A bipartisan group of US senators has introduced a comprehensive bill imposing extensive sanctions on Russia, with India identified as one of five countries that could incur tariffs for its continued purchase of Russian oil.
India said it is broad-basing and diversifying sourcing of petroleum product to meet market conditions.
Savings for Indian refiners from purchasing Russian oil have decreased to a third of what they were in the years following Russia's invasion of Ukraine, which triggered global crises, sanctions, and discounted Russian oil seeking buyers. Despite this, savings from importing cheap Russian oil were significant enough to help Indian refiners tide over frozen petrol and diesel pump prices.
India was the world's biggest importer of Russian oil in February, exceeding China by 20 million barrels.
A bipartisan group of US Senators has agreed to fast-track a bill allowing the President to impose sanctions on major purchasers of oil from Russia and Iran. This legislation, known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, aims to restrict funding for Russia's war efforts and Iran's energy and weapons sectors, potentially impacting countries like China and India through tariffs and other restrictions.
