US President Trump recently urged India to stop purchasing Russian crude oil, drawing attention to India’s growing reliance on Russia for its energy needs. While political pressure is high, analysts say an immediate halt is nearly impossible. Gradual reduction and diversification remain the practical path forward.
India is the world’s third-largest oil consumer, importing about 87% of its daily crude consumption of 5.5 million barrels. Historically, most imports came from the Middle East, particularly Iraq, Saudi Arabia, and the UAE.
After Western sanctions on Russia in 2022, India began buying Russian oil at discounted rates. The share of Russian crude in India’s imports rose from 1.7% in 2019-20 to around 40% in 2023-24, reaching 88 million tonnes in FY25. Early October 2025 saw Russian deliveries at 1.77 million barrels per day (bpd), making it India’s largest crude supplier.
Indian refineries operate on advance contracts of 4-6 weeks, meaning current shipments were arranged weeks ago. Contracts through November are already in place, so even if India stops new purchases, Russian crude deliveries will continue at current levels until late November.
Russian crude also offers advantages in price and refining efficiency, particularly for diesel and jet fuel production. Abruptly ending imports could cost India $3-5 billion per year and reduce refining efficiency.
Indian refineries could technically shift away from Russian crude, but alternatives have limitations. Middle Eastern oil can replace much of the supply, but American WTI and other global options face logistical, financial, and quality challenges. An effective strategy would combine Middle Eastern, American, and African/Latin American crude, though fully replacing Russian oil is difficult.
Russia remains a major exporter, and India is a key buyer alongside China and Turkey. Halting imports suddenly could push global oil prices above US$100 per barrel, affecting energy costs and inflation worldwide.
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Despite US President Trump’s call to stop buying Russian oil, India’s heavy reliance on Russian crude and existing contracts make an immediate stop impractical. A gradual reduction combined with diversified sourcing remains the most feasible strategy to ensure energy security and economic stability.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Oct 20, 2025, 10:24 AM IST
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