Russian oil accounted for 32 per cent of India’s total oil imports during the same period, down by 4 per cent year-on-year (Y-o-Y).
The report, titled ‘The Year That Tested Trade How India Fared in 2025‘, attributed the decline to the European Union’s (EU) ban on fuel products refined from Russian crude, along with steep tariffs imposed by the United States (US) on India’s imports of Russian oil. The US also imposed sanctions on Rosneft and Lukoil, two of Russia’s largest producers of crude.
Where did India import from?
While India slightly reduced its reliance on Russian crude, imports from the US surged 83.3 per cent in value, rising from $4.25 billion to $7.8 billion. Imports from the United Arab Emirates (UAE) also surged 8.7 per cent to $12.5 billion, according to the report.
The report said that the move reflected a “strategic shift toward ‘clean’ barrels that could be used for exports without violating Western restrictions”.
Image: Rubix Data Sciences
Exports decline
The report further added that the EU sanctions had a huge impact on India’s export of petroleum products, which declined sharply. Shipments of refined petroleum products to India’s top five export destinations fell sharply during the period, with deliveries to the Netherlands, Singapore and the US declining 35.6 per cent, 38 per cent and 15.4 per cent, respectively. Exports to the UAE and Australia also dropped 17.3 per cent and 14.2 per cent.
“This is because EU rules restricted imports of fuels refined from Russian crude even if processed in India, indicating that Western buyers grew more cautious about purchasing Indian products that may have been derived from Russian-origin crude amid tighter enforcement,” the report noted.
While India’s key petroleum product export markets saw declines, smaller destinations gained momentum. Exports to China and Oman each doubled their share from 2 per cent to 4 per cent, while South Korea’s share rose from 1 per cent to 2 per cent. “This indicates a strategic pivot to offset losses in traditional markets,” the report added.
