The India–Russia oil trade has entered a sensitive and complex phase amid growing international pressure and sanctions in 2025. As of August, global scrutiny—particularly from the United States—has led to shipping diversions and rising uncertainty in crude oil imports from Russia. Despite these challenges, India continues to import Russian oil, maintaining its stance that energy decisions are made based on national interest and economic viability, not political influence. This comes at a time when the world is closely watching the India-Russia crude oil deal and its broader implications on the global oil market.
India, the world’s third-largest oil importer, has relied heavily on cheap Russian oil since 2022, when the Ukraine war prompted European countries to cut ties with Russian crude. By 2023, Russian oil imports to India made up over 40% of India’s total crude basket, giving Indian refiners access to deeply discounted barrels. However, in July 2025, those imports saw a significant decline—dropping by nearly 24% to around 33.8% of India’s oil supply, due to new U.S. sanctions on Russian oil vessels and tightening compliance regulations.
Recently, three major oil tankers—Tagor, Tassos, and Guanyin—carrying Russian crude oil to India were diverted due to U.S. sanctions. Two of these vessels rerouted to China and Egypt, while one continued toward India’s Sikka port. This incident highlights the rising challenges faced by Indian refiners sourcing Russian oil under sanctions. As a result, several Indian state-run oil companies like Indian Oil Corporation (IOC), BPCL, and HPCL temporarily paused new Russian purchases, wary of violating international norms or facing secondary sanctions.
Meanwhile, private oil companies in India—such as Reliance Industries and Nayara Energy—continue to import discounted Russian crude under long-term contracts. Reliance has publicly clarified it hasn’t dealt with any sanctioned vessels, maintaining operational transparency. Nayara Energy, however, came under indirect pressure when the EU imposed sanctions on its Vadinar refinery, citing concerns over re-exports of refined fuels derived from Russian barrels. This move was criticized by Indian officials as a “unilateral action” that threatens India’s energy security and market autonomy.
In response to former President Donald Trump’s remarks suggesting that India had stopped buying Russian oil, Indian government officials strongly denied the claim. They reiterated that India’s Russian oil imports remain active and are based solely on price, availability, and national interest. This assertion also aligns with India’s ongoing commitment to securing affordable energy for domestic growth while staying clear of geopolitical entanglements. The government emphasized that it would not let foreign influence dictate its energy procurement policy.
There are also concerns that Russia may retaliate by disrupting the Caspian Pipeline Consortium (CPC)—a critical export route that supplies global oil markets, including Western companies. Any such move could remove over 3.5 million barrels per day from global circulation, causing crude oil prices to spike sharply. These developments are creating a precarious situation where India’s oil supply from Russia must be carefully balanced against global diplomatic risks.
Despite these pressures, India is actively diversifying its crude oil sources. In recent months, Indian refiners have increased their purchases from Middle Eastern countries like Iraq, Saudi Arabia, and the UAE, as well as from Nigeria, Angola, and the United States. This diversification helps mitigate the impact of any one source being disrupted and strengthens India’s long-term energy security strategy.
What’s clear is that Russian crude oil to India remains an important component of the country’s energy mix in 2025. But the situation is evolving. With sanctions intensifying and shipping insurance becoming more complicated, Indian oil buyers are navigating increasingly narrow lanes. The market is now shaped not just by price and supply but also by geopolitical risks, compliance obligations, and shipping logistics.