NEW DELHI: India has spent euro112.5 billion ($121.59 billion) on Russian crude oil since the Ukraine war began, marking a significant shift in global energy trade patterns, a European think tank reported on Thursday.
According to the Centre for Research on Energy and Clean Air (CREA), India’s total fossil fuel imports from Russia have touched euro205.84 billion since February 2022, including euro13.25 billion for coal.
Russia emerged as India’s top oil supplier, meeting nearly 40 per cent of its crude demand at its peak – up from less than one per cent before the war. The primary driver behind this surge was the deep discounts on Russian crude, which initially allowed India to secure oil at $18-20 per barrel below global benchmarks.
However, the latest round of US sanctions has disrupted this equation. Many Indian refiners have started avoiding cargoes carried by sanctioned vessels or insured by restricted entities, leading to a decline in imports.
India imported 1.48 million barrels per day (bpd) of Russian crude in February, down from 1.67 million bpd in January.
A strategic energy shift
India, which depends on imports for over 85 per cent of its crude oil needs, has historically sourced most of its oil from the Middle East. But the Ukraine war reshaped this balance, with Russia offering steep discounts amid a Western embargo.
Refiners in India processed Russian crude into fuels like petrol and diesel, some of which found their way to Europe and G7 nations, CREA noted. Meanwhile, China remained the largest buyer of Russian fossil fuels, with purchases worth euro235 billion ($253.8 billion) since the war began.
In 2022-23, India spent $232.7 billion on crude oil imports, followed by $234.3 billion in 2023-24. In the first ten months of 2024-25, the bill stood at $195.2 billion.
Despite increasing geopolitical pressure, Russia remains India’s leading oil supplier, but with shrinking discounts and rising scrutiny, India’s energy strategy may see another shift in the coming months.
