India’s Merchandise Imports from Russia Fall 40.48% In January 2026 Amid Sharp Drop in Crude Purchases

India’s merchandise imports from Russia declined sharply in January 2026, according to trade data released on Monday. The value of imports fell 40.48% to $2.86 billion compared to $4.81 billion in January 2025.

The decline was primarily driven by a significant reduction in crude oil purchases by Indian refiners. Petroleum crude typically accounts for nearly 80% of India’s total merchandise imports from Russia, making this drop highly consequential for monthly trade figures.

Sharp Reduction in Russian Crude Oil Imports

Industry sources indicated that India’s crude oil imports from Russia during January were around $2.3 billion or possibly lower. This estimate aligns with statements from refiners suggesting that they have curtailed Russian crude purchases in recent months.

The government has not yet released detailed country-wise and commodity-wise data, but crude oil remains the central driver of this decline. Aside from crude, India’s imports from Russia generally include coal, coke, fertiliser, petroleum products, iron, newsprint, pulses, and precious stones.

Impact Of US Tariffs and Pressure on Crude Purchases

The trend of reduced Russian oil imports began after April 2025, when India’s crude oil imports from Russia reached a peak of $4.73 billion. This high-valued month coincided with the US announcing its Liberation Day tariffs and intensifying pressure on India to scale down Russian energy imports.

Subsequently, from August 27, 2025, the US imposed an additional 25% punitive tariff on Indian merchandise exports as a response to crude oil transactions with Russia. By September 2025, India’s Russian crude imports had fallen to $3.32 billion, a drop of nearly 30% from April levels.

Refiners’ Statements and Operational Adjustments

Indian refiners have publicly clarified their stance on Russian crude procurement. Responding to a media report on January 9, 2026, Reliance Industries Ltd stated on X that it was not expecting any Russian crude oil deliveries in January.

The company, which operates refining capacity exceeding 68 million tonnes per annum, is one of the largest private refiners in the country. Other Indian refiners have made similar indications, pointing to broader shifts in crude sourcing strategies.

Broader Trade Composition with Russia

While crude oil forms the bulk of India’s imports from Russia, several other commodities contribute to overall trade. Imports include coal and coke used in industrial processes, which form a smaller yet significant portion of the trade.

India also purchases fertiliser, petroleum products, pulses, and precious stones from Russia as part of its diversified import basket. The decline in total imports, therefore, underscores the scale of reduction in crude rather than other commodities.

Read More: India’s Trade Grows in January with Higher Merchandise and Services Activity

Conclusion

India’s merchandise imports from Russia saw a major contraction in January 2026 due to a steep fall in crude oil purchases. The reduction follows months of shifting trade conditions influenced by global geopolitical pressures and tariff actions.

Refiners’ decisions to limit Russian crude have contributed significantly to the decline. The full commodity-wise breakdown of January trade will provide additional clarity once released by the government.

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