India’s Russian crude imports hit record in Jun even as Moscow’s oil revenues slip
India's imports of Russian crude oil rose 34% month-on-month in June 2026, reaching an estimated EUR 4.5 billion in value and accounting for 83% of India's total Russian fossil fuel purchases (EUR 5.5 billion)
India remained the second-largest global buyer of Russian hydrocarbons in June, behind China (EUR 7.3 billion)
Major Indian refineries posted sharp month-on-month increases in Russian crude intake: Reliance's Jamnagar refinery (+150%), Indian Oil's Paradip facility (+126%), BPCL's Kochi refinery (+83%), and Nayara Energy's Vadinar refinery (+45%)
Despite higher import volumes, Russia's daily crude export revenues fell 8% to EUR 348 million due to lower realised prices, with total fossil fuel export revenue down 1% even as export volumes rose 7%
Indian refineries continued exporting refined petroleum products worth EUR 814 million to sanctioned markets (EU, Australia, US), including an estimated EUR 369 million derived from processed Russian crude; the UK received its first jet fuel shipment from Jamnagar (EUR 63 million) under a refined-product exemption
G7/EU Price Cap Coalition on Russian Oil
The Price Cap Coalition — G7 members, the European Union and Australia — set a cap of USD 60 per barrel on seaborne Russian crude oil exports in December 2022, using a mechanism that denies Western shipping, insurance and financial services to any cargo sold above the cap. The stated objective was to curb Russia's war-financing oil revenue while keeping Russian barrels flowing to avoid a global supply shock and price spike.
Key Details
- Price cap formally adopted December 3, 2022 by the G7 Price Cap Coalition (later expanded participants)
- Mechanism: Western (mainly EU/UK) shipping, insurance, and financial services for Russian crude cargoes are permitted only if the cargo is sold at or below the cap price
- India is not a member of the Price Cap Coalition and has not formally endorsed the cap as government policy, but Indian buyers have in practice largely transacted within or near the cap band
- Russia has responded by building a "shadow fleet" of tankers and alternate insurance arrangements to bypass Western-flagged shipping and insurance requirements tied to the cap
The June 2026 data shows the cap's structural effect in action — Indian purchase volumes rose sharply even as Russia's per-barrel and aggregate daily revenues fell, consistent with the cap's design of keeping oil flowing to market while suppressing seller revenue.
India's Energy Security Doctrine and Sanctions Position
India's official position is that it is not bound by unilateral sanctions imposed by the EU/G7/US that lack UN Security Council backing, and that energy imports are a matter of national economic interest and consumer price stability, not geopolitical alignment. India has repeatedly stated it evaluates energy purchases on price, availability and national interest rather than the origin country's political standing, so long as UN sanctions are not violated.
Key Details
- Russian crude's share of India's total crude imports rose from roughly 2% (pre-2022) to a peak range of about 35-40% following the Ukraine conflict and Western buyers' pullback from Russian oil
- India processes discounted Russian crude domestically and exports a share of refined products (petrol, diesel, jet fuel) globally, including to sanctioning countries — a practice permissible because refined products are not classified as "Russian-origin" crude under most sanctions regimes
- The Ministry of External Affairs has periodically stated that India's energy purchases prioritise "energy security" and consumer affordability
The continued export of refined products (worth EUR 814 million in the reference period, including from Russian-origin crude) to sanctioned markets like the EU and US illustrates the refining/re-export loophole that has drawn international scrutiny, and the UK's new jet-fuel exemption shows sanctioning countries selectively carving out refined-product imports even while restricting direct Russian crude purchases.
Strategic Petroleum Reserves and India's Crude Import Dependency
India imports roughly 85-88% of its crude oil requirement, making energy security and diversified sourcing a core economic and strategic policy priority. India maintains Strategic Petroleum Reserves (SPR) at three underground locations — Visakhapatnam, Mangalore, and Padur — under the Indian Strategic Petroleum Reserves Limited (ISPRL), a special purpose vehicle under the Ministry of Petroleum and Natural Gas, to cushion against supply shocks.
Key Details
- India's crude oil import dependency: approximately 85-88% of domestic consumption
- Strategic Petroleum Reserve locations: Visakhapatnam (Andhra Pradesh), Mangalore and Padur (Karnataka), managed by ISPRL
- Discounted Russian crude has helped India manage its import bill and moderate domestic fuel inflation since 2022, a key macroeconomic consideration behind the sustained high volumes
The record June 2026 volumes reflect India's continued use of discounted Russian crude as a lever to manage its large and structural import dependency, a central plank of its energy security strategy.
- India's Russian crude imports in June 2026: up 34% month-on-month, valued at ~EUR 4.5 billion (83% of total Russian fossil fuel purchases of EUR 5.5 billion)
- India ranked second globally in Russian hydrocarbon purchases in June 2026, after China (EUR 7.3 billion)
- Refinery increases: Jamnagar (Reliance) +150%; Paradip (IOC) +126%; Kochi (BPCL) +83%; Vadinar (Nayara) +45%
- Russia's daily crude export revenue: down 8% to EUR 348 million; total fossil fuel export revenue: down 1% to EUR 734 million/day despite a 7% rise in export volumes
- G7/EU price cap on Russian seaborne crude: USD 60/barrel, adopted December 3, 2022
- India's crude import dependency: ~85-88% of domestic requirement
- Indian refined product exports to sanctioned markets (EU, Australia, US) in the reference period: EUR 814 million, of which ~EUR 369 million linked to Russian-origin crude