India's Russian Oil Imports Surge to 2 Million Barrels per Day in August 2025.

In August 2025, India’s crude oil imports from Russia surged to an all-time high of 2 million barrels per day (bpd), cementing Moscow’s position as New Delhi’s top energy supplier. The surge comes despite ongoing Western sanctions on Russia following the Ukraine war and reflects India’s strategy of sourcing discounted oil to ensure energy security.

      - According to data released by the Ministry of Petroleum and Natural Gas (MoPNG), India’s overall crude oil imports averaged 4.8 million bpd in August 2025, of which Russia accounted for nearly 42%. This marks a sharp increase compared to the 1.7 million bpd imported in July 2025, highlighting India’s growing reliance on discounted Russian crude.

      - India and Russia have been increasingly settling oil trade using a rupee-dirham payment mechanism via banks in the United Arab Emirates (UAE) to bypass the U.S. dollar-based financial system affected by sanctions. The Reserve Bank of India (RBI) has facilitated special vostro accounts with Russian banks to support this system, ensuring uninterrupted supply chains.

      - The surge in imports comes amid heightened pressure from the United States Department of State and the European Union (EU), urging India to align with G7 sanctions on Russian oil. However, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri defended India’s stance, emphasizing that New Delhi’s priority is to protect domestic consumers from global price volatility.

Main Point :-   (i) A significant portion of Russian crude is being processed at Indian refineries like Reliance Industries’ Jamnagar refinery in Gujarat and Indian Oil Corporation (IOC) refineries, with a part re-exported as refined petroleum products to markets in Europe and Asia. This has allowed India to benefit economically while balancing diplomatic relations with the West.

      (ii) The import surge is part of India’s broader energy diversification strategy under the Integrated Energy Policy of NITI Aayog. India, the world’s third-largest oil importer after China and the United States, aims to reduce reliance on Middle Eastern suppliers. The Russian imports are helping India keep average crude import costs below USD 80 per barrel, despite Brent crude trading above USD 90 globally.

(iii) Analysts from the International Energy Agency (IEA) predict that India’s Russian oil imports could remain above 1.5 million bpd in the coming months, depending on geopolitical developments. With Russia’s market share in India jumping from 1% in 2021 to over 40% in 2025, the partnership signals a long-term restructuring of India’s energy sourcing strategy, aligning economic pragmatism with diplomatic balancing.
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