India Holds Spot as No. 2 Buyer of Russian Fossil Fuels in Jan 2026

India remained the second-largest buyer of Russian fossil fuels in January 2026, importing energy worth €2.2 billion ($2.59 billion), according to data from the Centre for Research on Energy and Clean Air (CREA). Although India’s Russian oil imports have declined since November, crude oil still formed the majority of purchases. Global sanctions, EU restrictions and changing trade flows are now reshaping India’s Russian oil imports and overall energy strategy.

India’s Russian Oil Imports in January 2026

India’s Russian oil imports in January 2026 stood at €2.2 billion ($2.59 billion), slightly lower than December’s €2.3 billion.

Break-up of imports,

• Crude oil: €2 billion ($2.36 billion) – 78% share
• Coal: €442 million ($520.6 million)
• Oil products: €30 million ($35.3 million)

Despite a 23% drop since November, India remained behind only China in buying Russian fossil fuels. The data highlights how India’s energy security continues to rely significantly on discounted Russian oil supplies.

China Overtakes With Surge in Russian Oil Imports

While India reduced purchases, China increased its Russian oil imports by 29% over the last two months. China’s crude imports reached €4 billion ($4.71 billion) in January alone.

A key development,

• Chinese refiners doubled purchases of Urals crude, reaching record volumes.
• Imports of the ESPO grade remained stable.
• Russian oil constituted about 16% of China’s total imports.
• As India stepped back from Russian supplies, China strengthened its position as the largest buyer of Russian oil in 2026.

Sanctions, EU Ban and OFAC Impact on India’s Russian Oil Imports

India’s Russian oil imports were influenced by multiple geopolitical developments,

• OFAC sanctions on Rosneft impacted supplies to Indian refiners.
• The European Union’s ban on oil products made from Russian crude came into effect on January 21, 2026.
• EU and UK price cap set at $44.1 per barrel from February 1.

In January, the Jamnagar refinery owned by Reliance Industries reportedly did not receive sea-borne Russian oil due to sanctions. However, shipments resumed in February.

Urals Crude Prices and Global Oil Trends

The average price of Russia’s Urals crude rose by 4% in January to $54.2 per barrel, staying above the new EU-UK price cap.

Key oil import figures,

• India imported 1.2 million barrels per day (bpd) of Russian oil in January.
• Saudi Arabia supplied 774,000 bpd to India.
• Imports from Russia are expected to fall to 800,000 bpd in March, the lowest since May 2022.
• Saudi Arabia is gradually regaining its share in India’s oil basket as refiners rebalance supply sources.

India’s Energy Strategy Amid Russian Oil Debate

Although former US President Donald Trump claimed India may stop buying Russian crude under a new trade understanding, there has been no official confirmation from the Indian government.

India’s approach appears to be,

• Diversifying crude sources
• Maintaining strategic energy security
• Balancing geopolitical pressures
• Securing cost-effective imports

India’s Russian oil imports remain driven largely by pricing advantages and supply stability rather than political alignment.

Question

Q. In January 2026, India remained the ___ largest buyer of Russian fossil fuels.

A) First
B) Second
C) Third
D) Fourth