India’s Russian Oil Imports Hit Record As US Tariff Threat Looms

India’s Russian oil imports hit a record for the second straight month in July, as discounted Russian crude continued to dominate the country’s import basket despite the threat of steep US tariffs on countries buying Moscow’s oil.

Indian refiners imported a record 2.8 million barrels per day (bpd) of Russian crude in July, accounting for about 55.5 per cent of India’s total crude imports of just over 5 million bpd, according to data compiled by the Centre for Research on Energy and Clean Air (CREA).

In value terms, India bought €5.5 billion worth of Russian crude in July, up from €4.5 billion in June. Crude made up 87 per cent of India’s total Russian fossil fuel purchases.

The sharp rise has come as the United States threatens tougher tariff measures over countries continuing to buy Russian oil. Experts say India is relatively well placed to absorb potential pressure because it has diversified crude supplies, strategic reserves and alternative payment mechanisms.

India’s dependence on Russian oil has grown dramatically since Russia’s invasion of Ukraine in February 2022. Russian crude accounted for only about 2.5 per cent of India’s imports in 2021. The volume rose to around 7,40,000 bpd in 2022 and nearly 1.8 million bpd in 2023, making Russia India’s largest crude supplier.

The July record was not driven by India’s two biggest Russian crude receiving hubs, Jamnagar and Paradip. Instead, smaller terminals drove the increase. Imports through HMEL Mundra jumped 58 per cent, while receipts at Indian Oil’s Vadinar terminal rose 35 per cent and Mumbai volumes increased 37 per cent. Paradip shipments fell 22 per cent, while Jamnagar remained unchanged.

Russia’s Urals crude averaged $60.22 a barrel in July, down 3 per cent from June but still well above the $44.10 G7-EU price cap that took effect in February 2026.

India was the second-largest buyer of Russian fossil fuels in July, purchasing €6.4 billion worth of Russian hydrocarbons. Coal accounted for €512 million and oil products for €341 million.

India’s role also extends beyond direct crude purchases. Its large refineries process Russian oil into fuels that are exported worldwide. CREA said refineries in India, Turkiye, Brunei and Georgia using Russian crude exported €633 million worth of oil products to sanctioning countries in July. Five cargoes from Indian refineries using Russian crude were unloaded at EU ports during the month.

Jamnagar remains particularly important. Russian crude accounted for about 35 per cent of its feedstock in the three months through July, according to CREA. Refined products from the refinery were also shipped to the United States.

Meanwhile, Russia’s oil product exports fell 23 per cent in July to 4.7 million tonnes, their lowest level on record and less than half the 9.6 million tonnes recorded in July 2025.

The latest figures underline the growing importance of Russian crude to India’s energy security. For Moscow, India provides a major outlet for crude at a time when Western restrictions are tightening. For New Delhi, Russian supplies remain commercially attractive, but the record purchases also increase exposure to US tariff and geopolitical risks.