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EXPLAINER-Where could India look to replace Russian oil?
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EXPLAINER-Where could India look to replace Russian oil?
Aug 6, 2025 6:36 AM

NEW DELHI, Aug 6 (Reuters) - India, which gets more than

a third of its oil imports from Russia, is likely to turn to

supplies from the Middle East and Africa and other regions if it

is forced to cut Russian imports due to possible U.S. penalties.

WHY IS INDIA IMPORTING RUSSIAN OIL?

India turned to purchasing Russian oil sold at a discount

after Western countries imposed sanctions on Moscow and shunned

its supplies over its invasion of Ukraine in 2022.

Russia has become the top supplier to India, accounting for

about 35% of India's overall supplies, up from less than 2%

before the war in Ukraine.

Global crude prices surged to $137 per barrel on supply

shortage fears in the wake of the Western-led sanctions before

stabilising. The discounted Russian crude has reduced Indian

refiners' costs. India imports more than 85% of its oil needs.

HOW MUCH RUSSIAN OIL DOES INDIA BUY?

The world's third biggest oil importer and consumer received

about 1.75 million barrels per day of Russian oil in the first

half of this year, up 1% from a year ago, trade data showed.

While Indian state refiners buy Russian oil from traders,

private refiners Nayara Energy and Reliance Industries Ltd

, operator of the world's largest refining complex,

have long-term supply deals with Rosneft.

WHY DOES TRUMP WANT INDIA TO CUT RUSSIAN OIL IMPORTS?

U.S. President Donald Trump has said he would raise the

tariff charged on goods imported from India substantially from

25%, in view of New Delhi's continued purchases of Russian oil.

He has warned that countries purchasing Russian exports could

face sanctions if Russia fails to reach a peace deal with

Ukraine.

New Delhi has resisted the pressure, citing its longstanding

ties with Russia and its economic needs.

However, the country's state refiners have paused buying

Russian oil.

WHAT ARE INDIA'S OPTIONS IF IT CAN'T BUY RUSSIAN OIL?

Besides Russia, India buys oil from Iraq - its top supplier

before the war in Ukraine followed by Saudi Arabia - and the

United Arab Emirates.

Indian refiners mostly buy oil from Middle Eastern producers

under annual deals with the flexibility to request more supply

every month. Since Trump's sanctions warning, the refiners have

bought crude from the United States, Middle East, West Africa,

and Azerbaijan.

India has diversified its sources of supply to about 40

countries, oil Minister Hardeep Singh Puri says, adding that

more supply is coming onto the market from Guyana, Brazil and

Canada.

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