India’s Spending on Russian Crude Oil
India has spent approximately 112.5 billion euros (around Rs 1.5 lakh crore) on purchasing crude oil from Russia since the Ukraine war began, as reported by the Centre for Research on Energy and Clean Air (CREA). This spending highlights India’s growing reliance on Russian oil since February 24, 2022.
Russia’s Earnings from Fossil Fuel Exports
Russia has earned EUR 835 billion from fossil fuel exports since the war started. China is the largest buyer, with EUR 235 billion spent on Russian fossil fuels, including EUR 170 billion on oil, EUR 34.3 billion on coal, and EUR 30.5 billion on gas.
India’s Total Purchases of Fossil Fuels from Russia
India has bought fossil fuels worth EUR 205.84 billion from Russia, from the start of the war until March 2025. This includes EUR 112.5 billion (USD 121.59 billion) on crude oil and EUR 13.25 billion on coal.
India’s Crude Oil Imports and Expenditure
India imports over 85% of its crude oil. In the 2022-23 fiscal year, India spent USD 232.7 billion on crude oil imports, with an increase to USD 234.3 billion in 2023-24. In the first 10 months of the current fiscal year, India spent USD 195.2 billion on crude imports.
Shift in Source of Oil: Middle East to Russia
Before the Ukraine war, India primarily sourced oil from the Middle East. However, with Russian oil being offered at significant discounts after Western sanctions and European countries reducing their purchases, India’s imports of Russian oil skyrocketed, reaching as high as 40% of its total crude imports.
Indian Refineries Processing Russian Oil
Some Indian refineries processed Russian crude oil into products like petrol and diesel, which were then exported to Europe and other G7 nations, as reported by CREA.
Impact of Recent Sanctions on Imports
Recent U.S. sanctions have led to a decline in Indian imports of Russian oil, particularly after India began avoiding shipments carried by sanctioned vessels or insured by banned entities. However, Russia remains India’s top oil supplier, with 1.48 million barrels per day (bpd) of crude oil imported in February 2025, slightly down from 1.67 million bpd the previous month.
Discounts on Russian Oil and India’s Energy Needs
Russia began offering steep discounts on crude oil after Western sanctions, providing an opportunity for India to secure cheaper oil. The discount reached up to USD 18-20 per barrel during the height of the crisis but has since decreased to below USD 3 per barrel. With its significant energy needs and sensitivity to oil price fluctuations, India found these offers too attractive to pass up.
