India’s Russian Oil Imports Rise to 2 Million Barrels Per Day in August Despite US Tariff Tensions

New Delhi, August 15, 2025 – India’s crude imports from Russia have climbed to 2 million barrels per day (bpd) in August, accounting for nearly 38 per cent of total inflows, even as geopolitical pressure and trade friction with the United States intensify.

Data from global energy analytics firm Kpler shows Russia retained its position as India’s top supplier in the first half of August. Shipments from Iraq fell to 730,000 bpd from 907,000 bpd in July, while imports from Saudi Arabia dropped to 526,000 bpd from 700,000 bpd. The United States ranked fifth, supplying 264,000 bpd.

“Russian crude imports into India have so far remained resilient in August, even after the Trump administration’s tariff announcement in late July,” said Sumit Ritolia, Lead Research Analyst at Kpler. He noted that most August cargoes had been booked in advance, with any significant changes expected only from September onward.

Indian refiners say no government directive has been issued to cut Russian oil volumes. “Neither we are being told to buy nor told not to buy,” said Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney. He added that Russian crude accounted for 22 per cent of IOC’s intake in April-June, a level likely to remain steady.

Bharat Petroleum Corporation Ltd (BPCL) Director (Finance) Vetsa Ramakrishna Gupta said Russian imports declined in July as discounts narrowed to USD 1.5 per barrel, far below the peak of USD 40 in 2022. Discounts have since widened slightly to above USD 2.

India, the world’s third-largest oil consumer, turned to Russian crude after Western sanctions on Moscow in 2022, raising Russia’s share of imports from less than 0.2 per cent before the Ukraine war to as much as 40 per cent.

Ritolia said refiners are now diversifying to manage risks. “There’s growing interest in sourcing more barrels from the US, West Africa, and Latin America not to replace Russian supply but to hedge against disruptions. It reflects a shift from margin maximization to energy security.”

Sahney reiterated that India’s stance remains rooted in economics. “Such purchases will continue unless sanctions are imposed. We are doing business as usual.”