Despite US sanctions, Indian imports of Russian crude remain steady, securing refiner margins into 2026 as prices fall.
Despite increased Western pressure and sanctions, Indian imports of Russian crude oil have remained steadfast and are projected to stay significant throughout 2026. While purchasing volumes dipped from a peak of over 2 million barrels daily to approximately 1.3 million barrels by December 2025, analysts suggest this level will stabilise as Indian refiners prioritise cost-effective margins and supply security.
Oil Minister Hardeep Puri noted that market dynamics remain the primary driver for these procurement decisions. Although some domestic firms like Bharat Petroleum Corporation have sought long-term agreements with Middle Eastern suppliers to diversify their portfolios, the falling price of Russian Urals makes it difficult to abandon them. Even major players like Reliance Industries have recently initiated new orders for cargoes not affected by sanctions.
Future shifts in this trade relationship may depend on a potential trade agreement with the United States or further expansion of India’s refining capacity, which is expected to reach 309.5 million tonnes annually by 2030.
For now, India continues to leverage its position as a global demand hub, drawing from 41 different international sources to maintain a resilient energy supply chain.
SOURCE – BUSINESS STANDARD
