India Increases Imports of Russian Oil
As part of Prime Minister Narendra Modi's “diversification” policy, Indian refiners have also increased crude oil imports from the USA
After a slump of about three months due to tougher US sanctions on Russia, India’s imports of Russian crude oil started rising again in March 2025. According to the Indian business and financial newspaper The Economic Times, this month the volume of Russian supplies approached the usual level of 1.54 million barrels per day “due to the transportation of cargoes by vessels not subject to sanctions restrictions, as well as due to the partial redirection of supplies from Turkey.”
The resumption of Russian supplies to the world’s third-largest oil importer and consumer is easing a supply shortage caused by tough Western sanctions imposed on Moscow after the start of the conflict in Ukraine. It also contributes to “lower oil prices for Middle Eastern exporters.” At the beginning of this year, Russian oil supplies to India and China sharply decreased amid the tightening of the sanctions regime: the “blocking” sanctions imposed by the United States on January 10 affected not only Russian oil companies such as Surgutneftegaz, but also insurers, shipping companies, and brokers.
However, in March, according to data from analytics firm Kpler (see chart below), India’s imports of Russian crude, predominantly Urals grade, again reached 1.54 million bpd, recovering from a decline to 1.1-1.2 million bpd in the previous three months.
According to another Indian publication, The Times of India, citing data from international shipping agency Vortexa, “in February, amid a decline in Russian oil imports by about 25% – from 1.4 million to 1.07 million bpd – India almost doubled its oil purchases from the USA to 0.2 million bpd.”
Tariffs for oil tanker transportation from Russia’s western ports to India reached a twelve-month high of $8 million per voyage. This has boosted the supply of ships, but has resulted in lower profits for Russian oil suppliers, the sources say. As Reuters notes, “the decision by Turkey’s largest refiner Tupras to temporarily suspend Russian oil imports starting February 18 has allowed it to increase supplies to Asian markets.” Turkish imports of Russian crude fell to 127,000 bpd in March from about 300,000 bpd recorded before US sanctions were imposed in January. Discounts on Russian crude for Indian buyers have narrowed to $2.60-$2.80 per barrel against Brent crude for cargoes scheduled for shipment in March and delivery to Indian ports in April. Sources said the previous month’s discounts were $2.50 to $3.00 per barrel.
On March 13, futures prices for Texas Intermediate WTI crude with delivery in April fell to $67.24 per barrel (-0.65%), while futures prices for North Sea Brent crude with delivery in May fell by 0.75% to $70.54 per barrel.
