Context and Latest Trend
- India’s crude oil imports from Russia declined to a 38-month low in December 2025.
- Import value stood at $2.7 billion, reflecting a sharp month-on-month contraction.
- Russia’s share in India’s crude basket fell to 24.9%, lowest in three years.
- The share was 34% in November 2025, indicating a steep recent decline.
Import Volume and Value Patterns
- India imported 5.8 million tonnes of Russian crude in December 2025.
- This was the lowest volume since February 2025.
- Import value declined 15% year-on-year compared to December 2024.
- It also dropped 27.1% from November 2025 levels.
Rise in U.S. Oil Imports
- Oil imports from the United States rose nearly 31% year-on-year.
- India imported $569.3 million worth of U.S. crude in December 2025.
- Import volumes from the U.S. rose 58% compared to December 2024.
- However, monthly imports fell due to a November import surge.
Diversification Strategy
- India sourced crude from 19 countries in December 2025.
- This was higher than 16 supplier countries in December 2024.
- Shares of 10 countries increased, while nine suppliers declined.
- Government emphasised diversification based on market conditions and global dynamics.
Geopolitical and Trade Context
- U.S. leadership claimed India may reduce Russian imports for tariff concessions.
- India has not officially confirmed such commitments.
- Officials stress decisions are guided by economic and energy security considerations.
Cost and Logistics Factors
- Russian oil remains cheaper due to discounted pricing.
- Shipping distance from Russia is far shorter than U.S. Gulf routes.
- Freight cost may reach $4.5/barrel from the U.S. or Venezuela.
- Comparable West Asian shipping costs remain around $1/barrel.
Price Comparison
- India paid $469.4/tonne for Russian crude in December 2025.
- U.S. crude cost averaged $506.7/tonne in the same period.
Commercial Viability Concerns
- Switching fully to Venezuelan oil requires $10–12/barrel discount.
- India imported no Venezuelan oil in December 2025.