Russia, which had barely a toehold in India’s oil import scene before the Ukraine conflict, has now become the country’s largest crude supplier—nudging out traditional heavyweights like Saudi Arabia, the United Arab Emirates, and Kuwait.
This shift in the oil basket has been one of the biggest trade pivots in recent years. But it might not be smooth sailing ahead. Crude imports from Russia are beginning to feel the heat—especially after a fresh wave of sanctions rolled out by the US.
Even with rising Russian oil on one side, India’s strongest export partner remains the US. Between April and December of financial year 2024–25, exports to the US reached $60 billion, making up 18.62% of India’s total exports.
Tucked inside this number is a key slice—refined petroleum products. India shipped out $3.15 billion worth of refined petroleum to the US in just those nine months. This makes the US the fourth-largest buyer of Indian petroleum products, behind the Netherlands ($10.89 billion), the UAE ($4.74 billion), and Singapore ($3.83 billion).
On January 10, the Joe Biden administration announced what is being called its most sweeping sanctions yet against Russia’s oil ecosystem. The US Treasury didn’t hold back—it blacklisted upstream oil and gas majors like Gazprom Neft and Surgutneftegas, clamped down on intermediaries, traders, ports, and slapped sanctions on 183 vessels that have been ferrying Russian crude, possibly to India too.
To top it off, a major Russian insurance provider that backs these shipments was also blacklisted, raising eyebrows across the energy trade corridors.
Indian oil marketing companies have seen such situations before. Shifts in policy, geopolitical surprises—they’ve had to juggle through plenty. An official source familiar with the matter reportedly said there have already been dips in Russian crude imports, not just recently, but last year too. "Our importers are in continuous discussions with other producers," the person noted.
That suggests some groundwork may already be underway to manage any future turbulence.
For now, Russian oil continues to flow into Indian refineries, but the situation could get complicated. With shipping vessels sanctioned and insurance in a limbo, some cracks are beginning to show. Industry watchers are keeping an eye on how these restrictions play out in the coming months—and whether India will start leaning more on other suppliers once again.
Nothing is off the table yet, but one thing’s for sure: the global energy chessboard is shifting again, and India is right in the middle of the play.
