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    India Cuts Dependence on Russian Crude as Oil Import Mix Shifts in December

    3 months ago

    India’s crude oil import pattern witnessed a notable shift in December 2025, with purchases from Russia dropping to their lowest level in more than three years, reflecting a broader move towards diversifying energy sources amid changing global and market conditions.

    According to an analysis of recent trade data, the value of India’s crude oil imports from Russia declined to approximately $2.7 billion in December 2025. This marked a 38-month low and represented a sharp fall both on a month-on-month and year-on-year basis. Russian crude accounted for just under one-fourth of India’s total oil imports during the month, a significant reduction from around one-third in November 2025.

    Sharp Decline in Russian Oil Share

    The reduction in Russian oil imports was evident not only in value terms but also in volume. India imported about 5.8 million tonnes of crude oil from Russia in December, the lowest level recorded since early 2025. Compared to December 2024, the value of imports from Russia fell by around 15%, while the decline was steeper—over 27%—when compared to the immediately preceding month.

    As a result, Russia’s share in India’s overall crude oil import basket slipped to nearly 25% in December 2025, marking its lowest proportion in roughly three years. This shift suggests a gradual recalibration of sourcing strategies rather than an abrupt policy-driven move.

    Global Context and Trade Speculation

    The changing import numbers have drawn international attention, particularly amid claims from sections of the U.S. political leadership suggesting that India may be reducing Russian oil purchases as part of broader trade negotiations. These claims have linked India’s energy imports to potential tariff adjustments on Indian goods entering the U.S. market.

    However, Indian authorities have not officially confirmed or denied such assertions. Instead, the government has consistently maintained that its energy procurement decisions are guided by commercial considerations, price competitiveness, supply security, and evolving international circumstances. Officials have reiterated that India continues to engage with multiple suppliers to ensure stability in its energy needs.

    Rising Imports from the United States

    As imports from Russia declined, the United States emerged as one of the beneficiaries of India’s diversification strategy. In December 2025, India imported crude oil worth approximately $569 million from the U.S. While this figure was lower than the unusually high levels seen in November, it still represented a substantial increase of nearly 31% compared to December 2024.

    In volume terms, U.S. crude shipments to India stood at around 1.1 million tonnes in December, marking a year-on-year increase of nearly 58%. Analysts note that month-to-month fluctuations are common in oil trade, especially when previous months record temporary spikes due to pricing or logistical factors.

    Broader Diversification of Suppliers

    December 2025 highlighted a more diversified crude oil sourcing approach by India. The country imported oil from as many as 19 different nations during the month, up from 16 supplier countries in the same period a year earlier. Among these, the share of 10 countries in India’s crude oil basket increased, while nine saw a relative decline.

    This wider sourcing reflects India’s long-term strategy to avoid over-reliance on any single supplier and to mitigate risks arising from geopolitical tensions, sanctions, or supply disruptions. Energy experts point out that diversification allows refiners to optimise costs and adapt to changing global oil markets more efficiently.

    Long-Term Energy Strategy

    India is one of the world’s largest importers of crude oil, meeting over 80% of its oil requirements through overseas purchases. In recent years, discounted Russian crude had significantly boosted Russia’s share in India’s import mix. However, the latest data suggests that India is gradually rebalancing its portfolio as price advantages narrow and alternative supplies become more viable.

    Industry observers note that such adjustments are typical in a dynamic energy market and do not necessarily indicate a complete shift away from any particular supplier. Instead, they underline India’s emphasis on flexibility, economic prudence, and energy security.

    As global oil markets remain volatile and geopolitical developments continue to influence trade flows, India’s evolving import pattern underscores its attempt to navigate complex international dynamics while safeguarding domestic energy needs.

     
     
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