Oil and Gas in India
Buying Discounted Russian Oil
How India sharply increased imports of discounted Russian crude after 2022, the savings for refiners, Western price caps, and the 2025 US tariff response.
Before 2022, Russia supplied only a small share of India’s oil.
The shift
- After Russia’s invasion of Ukraine, Western buyers cut Russian oil purchases.
- Russia offered discounts.
- India’s imports of Russian crude surged, making Russia India’s largest supplier, around 35 to 40 percent of imports at times.
Savings
Discounts saved Indian refiners billions of dollars.
Refined exports
Indian refiners exported products like diesel, some reaching Europe.
The price cap
- The G7 imposed a price cap on Russian oil in December 2022, limiting Western shipping and insurance services.
- India said it bought oil in line with its energy needs.
US tariffs
In August 2025, the US imposed an additional 25 percent tariff on Indian goods, citing Russian oil purchases.
Trade-offs
Cheap oil vs diplomatic and trade costs.
An Indian refiner buys Russian crude at a discount of several dollars per barrel compared with Middle Eastern oil, improving its margins.
Russian imports surged only after 2022.
- India's Russian oil imports surged after 2022.
- Russia became India's largest supplier.
- Discounts saved refiners billions.
- The US imposed extra tariffs in August 2025.
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