How much crude oil does India currently import from Russia?

India imports between 1.6 and 2.0 million barrels per day of Russian crude, accounting for more than a third of its total oil import basket. This volume represents an unprecedented shift compared to pre-2022 levels, when Russian crude made up less than 2% of Indian refinery intake.

Could proposed U.S. tariffs actually halt Russian crude flows to India?

A total halt is highly improbable because India views affordable energy security as a core national interest. However, severe secondary sanctions could force Indian refiners to demand deeper price discounts to offset elevated legal, freight, and transactional risks.

What mechanisms do Russia and India use to evade G7 financial restrictions?

Both nations employ non-G7 maritime logistics, frequently using a 'shadow fleet' of tankers insured outside the International Group of P&I Clubs. Furthermore, payments are increasingly settled in non-dollar currencies such as the UAE dirham, Indian rupee, and Chinese yuan to bypass Western banking clearinghouses.

OilPrice · September 7, 2026 (20h ago) · 1 min read

Russia Vows to Keep Selling Oil to India Despite U.S. Tariff Threat

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Moscow has reaffirmed its commitment to maintaining uninterrupted crude shipments to New Delhi, actively pushing back against potential secondary sanctions and tariff measures proposed by Washington. This strategic stance highlights the resilience of the non-Western energy trade axis that emerged following the 2022 invasion of Ukraine. For global markets, India's continued absorption of discounted Russian barrels prevents a supply shock while cementing a long-term structural realignment of maritime crude flows.

Key Facts

Russian Ambassador to India Denis Alipov confirmed Moscow will maintain its position as a primary crude supplier to New Delhi.
The statement directly addresses proposed United States legislative efforts aimed at imposing punitive tariffs on nations importing Russian hydrocarbons.
Russia has solidified its position as India's single-largest crude supplier, displacing traditional Middle Eastern exporters like Iraq and Saudi Arabia.
Indian refiners process an estimated 1.6 to 2.0 million barrels per day of Russian crude, largely purchased below or circumventing the G7 price cap.
Transactions between the two nations increasingly bypass Western financial networks and maritime services through a burgeoning shadow tanker fleet and non-dollar settlements.

Background & Context

Following the European Union's embargo and the G7-led price cap imposed in late 2022, Russia rapidly redirected its flagship Urals and Sokol crude streams away from Europe toward Asia. India, the world's third-largest oil consumer and importer, seized the opportunity to secure discounted feedstocks to curb domestic inflation and expand refining margins. In response, lawmakers in the United States have periodically drafted measures targeting third-party buyers of Russian energy to curb the Kremlin's revenue, though previous attempts faced resistance due to fears of spiking global oil prices.

Market Impact

Russia's overt commitment signals that bilateral trade mechanisms, including alternative currency settlements in dirhams and rupees, have achieved substantial resilience against Western economic coercion. A formal U.S. move to penalize Indian imports could severely strain the geopolitical partnership between Washington and New Delhi under the Quad framework. For global refining markets, Indian processors would face acute margin compression if forced to substitute Russian Urals with more expensive sour grades from the Persian Gulf. Conversely, any supply disruption resulting from aggressive sanctions enforcement would inevitably trigger a sharp rally in Brent benchmarks.

What to Watch

Market participants should monitor the progression of secondary sanctions bills through the U.S. Congress, alongside potential executive countermeasures by the White House. Bilateral negotiations between Indian state-run refiners and Rosneft regarding term contracts will indicate whether physical volumes remain stable through 2025. Additionally, the operational efficiency and insurance coverage of the non-Western tanker fleet handling these voyages will serve as a key metric of trade longevity.

Frequently Asked Questions

How much crude oil does India currently import from Russia?: India imports between 1.6 and 2.0 million barrels per day of Russian crude, accounting for more than a third of its total oil import basket. This volume represents an unprecedented shift compared to pre-2022 levels, when Russian crude made up less than 2% of Indian refinery intake.
Could proposed U.S. tariffs actually halt Russian crude flows to India?: A total halt is highly improbable because India views affordable energy security as a core national interest. However, severe secondary sanctions could force Indian refiners to demand deeper price discounts to offset elevated legal, freight, and transactional risks.
What mechanisms do Russia and India use to evade G7 financial restrictions?: Both nations employ non-G7 maritime logistics, frequently using a 'shadow fleet' of tankers insured outside the International Group of P&I Clubs. Furthermore, payments are increasingly settled in non-dollar currencies such as the UAE dirham, Indian rupee, and Chinese yuan to bypass Western banking clearinghouses.

Read on OilPrice