India Free to Source Oil Globally, Says Russia Amid Claims of Shift in Energy Purchases

Russia on Wednesday asserted that India remains free to purchase crude oil from any supplier of its choice, stating that New Delhi’s diversification of energy imports is neither new nor unusual. The clarification came amid claims from the United States that India had agreed to reduce or halt purchases of Russian oil and explore alternative sources, including the U.S. and Venezuela.

Responding to questions from the media in Moscow, Kremlin spokesperson Dmitry Peskov said that India has historically sourced oil and petroleum products from multiple countries, and Russia has never been India’s sole supplier. He emphasised that Russia views India’s energy procurement decisions as a sovereign matter.

“India has always purchased oil from various international suppliers. Russia is not the only source, and this has been the case for many years. Therefore, we do not see anything fundamentally new in this situation,” Peskov said.

No Official Communication From India

Peskov also noted that Moscow has not received any official communication from New Delhi indicating a decision to stop importing Russian crude. A day earlier, he had stated that there was no formal message from Indian authorities regarding any cessation of oil purchases from Russia.

This position was echoed by Russia’s Foreign Ministry, which highlighted the mutual benefits of energy cooperation between the two countries. Foreign Ministry spokesperson Maria Zakharova said that trade in hydrocarbons has been advantageous for both sides and has contributed to stability in the global energy market.

“We are convinced that India’s purchase of Russian hydrocarbons benefits both countries and plays a role in maintaining balance in international energy markets. Russia is ready to continue close cooperation with its Indian partners in this sector,” Zakharova said during a briefing.

U.S. Claims and Indian Silence

The Russian statements follow comments by U.S. President Donald Trump, who recently claimed that Prime Minister Narendra Modi had agreed to stop buying Russian oil as part of broader trade discussions with Washington. Trump also suggested that India could increase imports of American crude and possibly Venezuelan oil.

However, Indian officials have not publicly confirmed any such commitment. Notably, Prime Minister Modi did not refer to any agreement on halting Russian oil imports while discussing trade relations with the United States. Analysts have pointed out that while India continues to engage with multiple energy suppliers, a complete and immediate shift away from Russian crude would be challenging.

Technical and Economic Constraints

Energy experts in Russia have also questioned the feasibility of replacing Russian oil supplies to India in the short term. Igor Yushkov, an expert at the National Energy Security Fund, said that Indian refineries are technically configured to process certain grades of crude, including the heavier and more sulphur-rich Russian Urals blend.

According to Yushkov, much of the crude exported by the United States consists of lighter shale grades, which are closer to gas condensates. “If India were to rely more heavily on U.S. oil, refiners would need to blend it with other grades to match refinery requirements. This blending increases costs, making a simple one-to-one substitution impractical,” he explained.

He also noted that Russia typically exports between 1.5 million and 2 million barrels of oil per day to India. “It is unrealistic to expect the U.S. to fully replace these volumes. This is why such claims should be viewed with caution,” Yushkov said, adding that the narrative may be aimed at portraying trade negotiations as a political victory rather than reflecting operational realities.

Lessons From Past Market Shifts

Yushkov recalled that when Russia redirected its oil exports from European and American markets to Asia in 2022, global production was temporarily reduced by around one million barrels per day. This contributed to a sharp rise in crude prices, with oil touching nearly $120 per barrel, and led to record-high fuel prices in the United States at the time.

Such experiences, analysts argue, demonstrate how abrupt changes in supply chains can disrupt global markets, underscoring why gradual diversification rather than sudden shifts is often preferred by large importing nations like India.

India’s Energy Dependence

India currently imports around 88 per cent of its crude oil requirements from overseas markets, making energy security a key policy priority. Until 2021, Russian oil accounted for a negligible share—around 0.2 per cent—of India’s total crude imports. This changed significantly after 2022, when discounted Russian crude became more accessible following geopolitical developments in Europe.

As a result, India emerged as one of the largest buyers of Russian oil. However, recent data indicates a moderation in imports. In the first three weeks of January, India’s intake of Russian crude reportedly averaged around 1.1 million barrels per day, down from approximately 1.21 million barrels per day in the previous month and significantly lower than peak levels seen in mid-2025.

Balancing Diplomacy and Economics

India’s approach to energy sourcing reflects a balance between economic considerations, technical feasibility, and diplomatic engagement with multiple partners. While trade discussions with the United States have included energy cooperation, Indian refiners continue to evaluate supplies based on price, quality, and logistical efficiency.

Russia’s latest remarks suggest that Moscow does not see India’s diversification efforts as a threat to bilateral ties. Instead, it views energy cooperation as part of a broader, pragmatic relationship shaped by market dynamics rather than political pressure.

As global energy markets remain volatile, India is expected to continue pursuing a diversified import strategy, drawing from multiple suppliers while safeguarding affordability and supply stability. For now, both Moscow and New Delhi appear keen to signal continuity rather than disruption in their long-standing energy partnership.