India-Russia Energy Partnership
From Strategic to Economic Dependence
The India-Russia energy relationship transformed fundamentally after Russia's invasion of Ukraine in February 2022. Western sanctions on Russian oil exports created a significant discount — Russian Urals crude was available at $20–30/barrel below Brent crude prices in 2022–23. Indian refiners, led by state-owned Indian Oil Corporation (IOC), HPCL, and BPCL, rapidly scaled up Russian crude purchases.
Russia's share in India's crude oil imports rose from ~1–2% in FY2021–22 to over 36% by FY2024–25, making Russia India's single largest crude supplier — overtaking Iraq and Saudi Arabia. India saved an estimated $7.9 billion on crude imports in the first 11 months of FY2024 alone by buying discounted Russian oil.
- Russia's share in India's crude imports: ~1% (FY2021–22) → 36% (FY2024–25)
- India's savings from Russian crude discounts: ~$5.1 billion (FY2023) + ~$7.9 billion (first 11 months FY2024)
- Initial discount: ~$25–30/barrel below Brent (2022–23); narrowed to ~$5–10/barrel by 2025 as demand normalised
- India is Russia's 2nd-largest export destination for fossil fuels (after China) as of January 2026
- Key Russian crude grades bought by India: Urals (main), ESPO (Eastern Siberia Pacific Ocean blend), Sokol
- Payment mechanism: shifted from USD to Russian rubles and Indian rupees after SWIFT sanctions
- Vladivostok-Chennai oil corridor: proposed logistics route discussed at India-Russia summits
● Tracked since March 04, 2026 · last seen April 03, 2026 · updates as the daily brief publishes