CHENNAI: India sharply reduced its purchases of Russian hydrocarbons in December as weakening demand, softer prices and shifting trade flows combined to curb import volumes. According to the Centre for Research on Energy and Clean Air, India’s total imports of Russian crude oil, refined fuels, coal and gas were valued at €2.3 billion in December, down from €3.3 billion in November, marking a steep month-on-month decline.
The fall suggests a cooling of the aggressive buying spree that had made India one of Russia’s largest energy customers over the past two years. Indian refiners had ramped up Russian crude intake after Moscow offered heavy discounts following Western sanctions, allowing them to replace costlier Middle Eastern and African supplies. However, December’s data indicates that this trade has become more sensitive to market dynamics and policy risks rather than being driven solely by price advantages.
One key factor behind the drop was lower crude oil prices during December, which reduced the overall value of imports even where physical volumes remained steady. At the same time, some Indian refiners appear to have moderated purchases after building large inventories in earlier months. Seasonal refinery maintenance and weaker fuel demand in parts of Asia also played a role in trimming fresh buying.
Another important influence was the growing complexity of sanctions and shipping restrictions surrounding Russian energy exports. While India is not part of Western sanctions, logistical challenges, tighter scrutiny of payments and shipping insurance, and uncertainty over compliance have increased transaction costs and risks. This has made some Indian buyers more cautious, especially for spot purchases and non-core grades of Russian crude and fuels.
The decline also reflects a gradual diversification of India’s energy sourcing. As discounts on Russian oil narrowed, refiners found Middle Eastern and US supplies more competitive again, particularly for certain grades needed to optimise refinery output. This reduced India’s reliance on Russian barrels at the margin, even though Russia remains one of the country’s largest single suppliers.
From a broader perspective, the drop in Russian hydrocarbon imports underscores how India’s energy strategy is evolving from opportunistic buying toward a more balanced approach. While discounted Russian oil has helped contain India’s import bill and inflation over the past two years, refiners are now adjusting to a market where geopolitical risks, freight costs and compliance concerns are becoming just as important as price.
For Russia, the decline in December highlights the fragility of its energy export revenues in key Asian markets. India and China have been crucial outlets for Russian hydrocarbons since Europe cut back sharply, so any sustained reduction in Indian buying would increase pressure on Moscow to offer deeper discounts or seek new customers.
Overall, the fall from €3.3 billion in November to €2.3 billion in December signals a significant cooling in India’s Russian energy trade at the end of 2025, reflecting a mix of softer prices, cautious buying and shifting global energy flows rather than a fundamental break in the relationship.