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India Turns to US for Crude as Geopolitical Pressures Impact Russian Oil Trade

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India’s crude oil import profile underwent substantial modification in 2025, reflecting both market dynamics and geopolitical considerations. Government data shows that crude imports from the United States increased dramatically by 65.6% to $8.2 billion during April-December 2025, while Russian crude imports experienced a contraction of over 17%, falling from $40 billion to $33.1 billion in the same period.
The transformation became particularly apparent in December 2025 import statistics. Russia emerged as the sole supplier among India’s top five to register declining shipments, with crude imports falling 15.15% to $2.71 billion in December 2025 from $3.2 billion a year earlier. This decline represents a significant departure from the pattern of heavy Russian crude purchases that had characterized India’s energy imports in previous years.
Conversely, India’s other major crude suppliers recorded impressive growth. Saudi Arabia achieved the most dramatic increase with a 61% year-on-year surge, delivering crude worth $1.75 billion in December 2025. US crude shipments to India expanded by 31% to reach $569.30 million. Iraq showed modest but steady growth with a 4.56% increase to $2.37 billion, while UAE crude imports rose 6% to $1.65 billion.
The steep decline in Russian crude imports coincided with intensifying economic pressure from the United States. The implementation of a 25% punitive tariff on Indian goods on August 27, 2025, specifically aimed to discourage India from purchasing sanctioned Russian petroleum. Monthly Russian crude import values reflected this pressure, declining from $3.62 billion in July 2025 to $2.71 billion by December 2025—a drop of more than 35% from November’s level.
Total crude oil imports to India from approximately 39 countries reached $11.29 billion in December 2025, up 9.1% from $10.34 billion in December 2024. Cumulative imports for the April-December 2025 period totaled $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. Government officials continue to emphasize that ensuring energy security for 1.4 billion Indians remains paramount, with diversification strategies adapting to evolving international circumstances.

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