What Happened
- Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Reliance Industries have reportedly stopped accepting offers from traders for Russian crude oil loading in March and April 2026.
- The move follows the India-US interim trade agreement framework announced on February 7, 2026, after which the US removed an additional 25% punitive tariff on Indian goods, reportedly in recognition of India's commitment to reduce Russian oil purchases.
- India aims to bring Russian crude imports below 1 million barrels per day (bpd) by March, eventually targeting 500,000-600,000 bpd, down from 1.7 million bpd in 2024.
- India's Russian crude oil intake in December 2025 fell to a 38-month low, with Russia's share dropping below 25% of total imports from 34% just a month earlier.
- Nayara Energy, in which Russia's Rosneft holds nearly 49% stake, may continue importing Russian crude due to its limited alternative sourcing options and faces a planned maintenance shutdown in April.
Static Topic Bridges
India's Crude Oil Import Dependency and Energy Security
India is the world's third-largest oil consumer and importer, with an import dependency of approximately 88% as of FY 2024-25. Domestic crude oil production has been declining steadily, falling from 38 million tonnes annually in 2010 to about 28.7 million tonnes in FY 2024-25. India imported approximately 242.4 million tonnes of crude oil in FY 2024-25, spending around $137 billion. The International Energy Agency (IEA) projects India will be the largest source of global oil demand growth through 2030.
- India's crude oil import dependency: approximately 88.2% in April 2024-February 2025 period
- Domestic crude production: approximately 28.7 million tonnes in FY 2024-25 (meeting only ~12% of petroleum needs)
- Total crude oil import bill: approximately $137 billion in FY 2024-25
- Natural gas import dependency also rose to 50.8%, the highest in four years
- India's Strategic Petroleum Reserves (SPR): 5.33 million tonnes capacity at three locations -- Visakhapatnam (1.33 MT), Mangalore (1.5 MT), and Padur (2.5 MT), managed by the Indian Strategic Petroleum Reserves Limited (ISPRL), a subsidiary of the Oil Industry Development Board under MoPNG
- Phase II SPR expansion at Chandikhol (Odisha) and Padur (expansion) was approved to add 6.5 million tonnes
Connection to this news: Shifting away from discounted Russian crude to costlier alternatives (US, Middle Eastern, or Venezuelan oil) could widen India's current account deficit and increase the crude oil import bill, directly impacting energy security.
Evolution of India-Russia Oil Trade Post-2022
Before the Russia-Ukraine conflict (February 2022), Russia's share in India's crude oil imports was less than 1% (approximately 1.59% in FY 2020-21). Following Western sanctions on Russia, India dramatically increased Russian crude purchases, taking advantage of steep discounts of $15-30 per barrel below Brent. Russia's share surged to 19.13% in FY 2022-23, 33.38% in FY 2023-24, and peaked at approximately 35.14% in FY 2024-25, making India Russia's largest crude oil customer in certain months, surpassing even China.
- Russia's share of India's crude imports: <1% (pre-2022) to approximately 35% (FY 2024-25)
- India emerged as Russia's largest crude buyer in 2023-24, accounting for 38% of Russia's crude exports in some months (China: 47%)
- Key Russian crude grades imported by India: Urals (medium sour), ESPO (East Siberia-Pacific Ocean blend)
- IOC was the largest buyer of Russian crude in January 2026 at 598,000 bpd, followed by Nayara at 410,000 bpd and BPCL at 154,000 bpd
- India's oil import bill from Russia surged from $1.1 billion in FY 2021-22 to $50.2 billion in FY 2024-25
- Russia's oil exports to India fell to $2.7 billion in December 2025, the lowest in over three years
Connection to this news: The rapid reversal from peak Russian oil dependence to active avoidance represents a fundamental shift in India's energy sourcing strategy, driven by the US trade deal's implicit linkage between tariff concessions and oil import choices.
India's Strategic Autonomy in Foreign Policy
India's foreign policy has evolved from Non-Alignment during the Cold War (articulated by Jawaharlal Nehru at the Bandung Conference, 1955) to "strategic autonomy" in the post-Cold War era, and more recently to "multi-alignment" -- maintaining diversified partnerships without formal alliance commitments. Strategic autonomy prioritizes independent decision-making insulated from external pressure, while multi-alignment involves cultivating a broad network of strategic partnerships simultaneously.
- Non-Aligned Movement (NAM): founded 1961 (Belgrade), India a founding member; India continues to participate but NAM's relevance has diminished
- India's nuclear tests (1998) were framed as exercises of strategic autonomy; India remains outside the NPT
- India designates Russia a "Special and Privileged Strategic Partnership" -- Russia remains a major defense supplier (S-400, BrahMos, Sukhoi Su-30MKI)
- India-US relations elevated to "Comprehensive Global Strategic Partnership" in 2020
- India's participation in both the Quad (with US, Japan, Australia) and BRICS (with Russia, China) exemplifies the multi-alignment approach
- External Affairs Minister S. Jaishankar has stated India remains "wedded to strategic autonomy" and that energy choices are "strategic decisions, not trade pact obligations"
Connection to this news: The curtailment of Russian oil imports under the implicit pressure of the US trade deal tests the limits of India's strategic autonomy, raising questions about whether economic incentives (lower tariffs) can effectively shape India's geopolitical energy choices.
Key Facts & Data
- Russia's share of India's crude imports: rose from <1% (pre-2022) to approximately 35% (FY 2024-25)
- India's target: reduce Russian imports to below 1 million bpd (March), then 500,000-600,000 bpd
- India's crude oil import dependency: approximately 88% (FY 2024-25)
- Crude oil import bill: approximately $137 billion (FY 2024-25)
- India's SPR capacity: 5.33 million tonnes (approximately 10 days of consumption)
- US tariff on Indian goods reduced from 50% to 18% under the interim deal
- India-US bilateral trade in FY25: record $132.2 billion
- Nayara Energy: Rosneft (Russia) holds approximately 49% stake
- India's domestic crude production: approximately 28.7 million tonnes (FY 2024-25)