India’s energy sourcing strategy continued to tilt towards Russian crude in August 2025, with imports climbing to 2 million barrels per day (bpd)—up from 1.6 million bpd in July. According to data from Kpler, a global analytics firm, Russian oil accounted for 38% of India’s total crude imports in the first half of August, underscoring how economic considerations outweigh geopolitical pressures in India’s crude procurement decisions.
India’s Oil Import Mix in August 2025
Total Crude Imports
- India’s total crude imports (first half of August): 5.2 million bpd
- Share of Russian oil: 2 million bpd (38%)
Shift in Supplier Trends
- Russia: Increased to 2.0 million bpd (up from 1.6 million bpd in July)
- Iraq: Declined to 730,000 bpd (down from 907,000 bpd)
- Saudi Arabia: Declined to 526,000 bpd (down from 700,000 bpd)
This indicates that Indian refiners are rebalancing their sourcing mix, capitalizing on discounted Russian crude despite Western sanctions and diplomatic sensitivities.
Why India is Buying More Russian Oil
Economic Rationale
- Discounted rates on Russian crude remain attractive compared to Middle Eastern supplies.
- Russian crude helps manage domestic fuel prices, crucial for India’s inflation control and economic stability.
Strategic Diversification
- By expanding Russian imports, India reduces over-reliance on traditional West Asian suppliers like Iraq and Saudi Arabia.
- This diversification is key to energy security, given global supply disruptions.
Geopolitical Context
Balancing Between East and West
- India faces pressure from Western nations, particularly the US and EU, to cut Russian oil imports.
- However, New Delhi maintains that its purchases are guided by national interest and energy security, often describing them as “business as usual.”
Russia’s Role in India’s Energy Basket
- Russia has rapidly risen as India’s largest oil supplier since 2022.
- Long-term supply contracts and preferential pricing continue to sustain high import volumes.
Implications for Global Energy Markets
- For Russia: India’s rising demand provides a crucial market to offset Western bans and sanctions.
- For OPEC: Declining Indian purchases from Iraq and Saudi Arabia highlight competition between traditional suppliers and Russia.
- For India: Lower energy costs help control inflation, but increased dependence on Russian crude may carry diplomatic risks.
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