The Hindu:- Published on 5 January 2026
Why in News?
India’s imports of Russian crude oil reached a six-month high of 7.7 million tonnes in November 2025, accounting for 35.1% of total oil imports and valued at $3.7 billion. The surge comes amid stalled US-India trade talks and tensions following a US tariff hike on Indian goods. Rising Russian and US crude imports now form nearly half of India’s total oil basket, highlighting the country’s strategic balancing between energy security, cost savings, and geopolitical pressures.
Surge in Russian Crude Imports
After several months of decline due to global factors such as the Russia-Ukraine conflict and Western sanctions, Russia’s share of India’s crude imports rebounded in November 2025. Discounted Urals crude, trading at $65–70 per barrel, compared to Brent at over $75, attracted Indian refiners, providing major cost savings while strengthening supply security. This marks a reversal from earlier trends when imports had dipped despite Russia being a key supplier since 2022.
Rising US Crude Imports and Trade Tensions
US crude imports to India also increased, reaching 2.9 million tonnes (~13% of total imports). Together with Russian crude, these two suppliers account for nearly 48% of India’s crude basket. Tensions escalated after Washington raised tariffs on unspecified Indian goods from 25% to 50% in August 2025, citing India’s sustained Russian oil purchases. This has complicated trade negotiations, despite India signaling its intent to diversify.
India’s Energy Demand and Strategic Context
India consumes approximately 5.5 million barrels of oil per day, with imports covering 85% of domestic demand. Russia’s discounted crude has saved India an estimated $10–12 billion annually, helping manage its $200+ billion annual oil import bill. Alternative payment mechanisms, including rupees, UAE dirhams, and rupee-rouble settlements, allow India to bypass sanctions while maintaining energy flow.
Diversification and Refinery Expansion
To reduce over-reliance on Russia, India has been diversifying its imports. Crude from the US, UAE, and Iraq has increased, alongside ongoing refinery expansions in Jamnagar and Paradip, enhancing domestic processing capacity. The government is also exploring rupee trade pilots and energy security agreements to balance cost-effectiveness with geopolitical stability.
Strategic Implications
While Russia’s discounted crude helps India economically, the surge risks straining US relations, which are vital for technology transfers and Quad cooperation. India must carefully balance energy security, cost savings, and diplomacy, while mitigating risks of sanctions, price volatility, and supply disruptions.
Conclusion
November 2025’s surge in Russian crude imports highlights India’s strategic balancing act: securing affordable energy, ensuring geopolitical stability, and promoting diversification. While cost advantages from Russia are significant, India continues to navigate US trade tensions, sanctions-related challenges, and supply risks to maintain sustainable, secure energy imports.
