India’s Russian oil imports have plunged by 65% in December, falling to 600,000-650,000 barrels per day from November’s 1.87 million bpd peak, trade data shows. The Kremlin says this India Russian oil imports decline stems from recent US sanctions on key Russian producers and will last only a brief period. Refiners face bank scrutiny and seek non-sanctioned suppliers. The shift hits ahead of President Vladimir Putin’s visit to India on December 4-5. This matters for South Asia as it risks higher fuel prices and supply disruptions in energy-hungry India, Pakistan’s key trade partner, and the region.
Kremlin Says India Oil Imports Temporary Drop Amid Sanctions Heat
Kremlin spokesperson Dmitry Peskov addressed the India Russian oil imports decline on Monday. He stated the drop may last only for a brief period as Moscow plans to boost supplies to New Delhi. “Russia remains an important supplier of energy to India,” Peskov said in Moscow. He added that trade mechanisms unaffected by third countries must be arranged. Russia has experience in such sanctioned trade, he noted.
This comes as US sanctions India Russia crude 2025 tighten. The US Treasury targeted Rosneft and Lukoil last month. Companies had until November 21 to wind down transactions. Indian refiners paused December orders to comply. Five major firms, Hindustan Petroleum Corp, Bharat Petroleum Corp, Mangalore Refinery and Petrochemicals, HPCL-Mittal Energy, and Reliance Industries account for 65% of India’s Russian oil buys. They halted new cargoes.
Data from Kpler confirms the scale. November imports hit 1.87 million bpd, up from October’s 1.65 million bpd. December projections show a three-year low at 600,000-650,000 bpd. That marks a 65% slide. State-run Indian Oil Corp placed orders from non-sanctioned entities. Bharat Petroleum nears deals for Russian crude. Reliance loaded precommitted cargoes by October 22. It will process post-November 20 arrivals at local-market refineries.
Nayara Energy, Russia-backed and Rosneft-owned, now processes only Russian oil. It pulled back after British and EU sanctions. Moscow wants India to support Nayara’s local sales and capacity use.
The India Russian oil imports decline disrupts a key lifeline. Russia supplies 40% of India’s seaborne crude in 2025’s first nine months, per International Energy Agency data. India became Russia’s top buyer post-2022 Ukraine invasion. Cheaper Russian barrels kept Indian fuel prices stable. Now, refiners eye US, African, and South American sources. US oil share in October hit a high since June 2024 on arbitrage.
US Sanctions India Russia Crude 2025: Refiners’ Cautious Pivot
US sanctions India Russia crude 2025 force quick changes. Bank checks grew strict after the November sanctions. One refining source called state refiners extremely cautious. They avoid breaching rules that could block global finance access.
Indian Oil Corp invited bids for 24 million barrels from the Americas in Q1 2026. Mangalore Refineries bought 2 million barrels of Abu Dhabi Murban crude via tender. This replaces Russian supply. Overall, non-Russian buys rise. Middle East share in November imports fell to 46% from October’s 48%. Commonwealth of Independent States, Russia, Kazakhstan, Azerbaijan rose to 39% from 36%.
The White House pressed India in October talks. It claimed halved purchases, but sources saw no instant cuts. Refiners tied November loads, including December arrivals. Oil Minister Hardeep Singh Puri sought import data from all refiners for November and December.
This India Russian oil imports decline echoes broader tensions. US President Donald Trump urged Modi to stop Russian buys. Trump linked it to trade deals. India holds firm on energy needs. It buys below EU price caps, sources say.
For South Asia, the stakes run high. India imports 85% of its oil. A prolonged drop could lift retail prices by 5-10%, analysts estimate. Pakistan, reliant on Indian fuel exports, faces ripple effects. Regional trade hit USD 15 billion last year. Energy security ties into food inflation and growth. Bangladesh and Sri Lanka watch as LNG spot prices climb.
Putin India Oil Deal December: Summit Spotlights Energy Ties
Putin India oil deal December looms large. Putin visits December 4-5 for summit talks with Modi. The Kremlin calls it key for their privileged strategic partnership. They will cover all relations aspects. Unspecified intergovernmental and commercial documents get signed. Putin meets President Droupadi Murmu too.
Ahead of the trip, Kremlin says India oil imports temporary drop will not derail ties. Peskov noted Russia’s cheap supply edge. Moscow eyes boosted volumes post-decline. The visit follows Putin’s last India trip in December 2021, pre-Ukraine escalation.
India’s defence buys from Russia persist. A top official noted shifts to US gear, but energy remains core. The summit could yield new mechanisms for sanction-proof trade. Russia draws on past experience with Iran and Venezuela.
Refiners like Nayara push for support. Rosneft stake makes it vital. Local processing aids India’s fuel self-reliance. But EU rules loom. From January 21, EU bans fuel from refineries handling Russian crude within 60 days of lading.
This forward push counters the India Russian oil imports decline. Moscow bets on diplomacy. New Delhi balances West ties with BRICS bonds. The outcome shapes 2026 flows.
Background: From Binge to Brake
India’s Russian oil path shifted post-2022. Imports averaged 1.9 million bpd in January-September 2025. That grabbed 40% of Russia’s exports. Discounts drew buyers. October saw 1.65 million bpd, up 2% from September. November spiked to stockpile pre-sanctions.
Published in SouthAsianDesk, December 2nd, 2025
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