India’s Russian Oil Imports Ease in September Amid US Pressure

India’s oil imports from Russia dipped slightly in September but still accounted for about one-third of its total crude shipments, despite ongoing US efforts to reduce these flows, which Washington claims

help fund Moscow’s war in Ukraine.According to Kpler Ltd., shipments to India—the world’s third-largest oil consumer—totaled 1.61 million barrels per day in September, down from 1.72 million barrels per day in August. Compared with September 2024, imports from Russia are 16% lower, consistent with trends highlighted earlier by industry sources.The trade has gained global attention after the United States imposed a punitive 50% levy on imports of Indian goods, aiming to pressure New Delhi to curb its Russian oil purchases. Notably, Washington has refrained from similar action against China, another major buyer of Russian crude.Despite the US push, India continues to prioritize price-driven deals, with Russian barrels remaining attractive due to discounted pricing. Finance Minister Nirmala Sitharaman affirmed that India would continue buying Russian oil, focusing on purchases “what suits us best.” Indian Oil Corp.’s Director of Finance, Anuj Jain, echoed this, noting that refiners will continue acquisitions based on economics.“Russian barrels remain central to India’s crude slate, but volumes are stabilizing at a lower plateau,” said Sumit Ritolia, lead analyst at Kpler. “Indian refiners are gradually broadening their supply basket, balancing economic advantage with energy security and geopolitical risk.”Discounts and LogisticsRussian Urals crude, shipped from Russia’s western ports, was sold at approximately $1 a barrel discount to the Dated Brent benchmark in July-August, the narrowest since Moscow’s full-scale invasion of Ukraine in 2022. Purchases made in August typically arrive in India in September, and the narrowing discount may have contributed to the slight reduction in imports.Despite geopolitical tensions, drone strikes on Russian energy infrastructure have not disrupted availability for Indian buyers. Refiners reportedly have secured sufficient Urals crude for November delivery. Improved discounts of over $3 a barrel make Russian oil the cheapest supply source for India currently.Russia’s overall seaborne crude exports are also robust, hitting a 16-month high, averaging 3.62 million barrels per day in the four weeks ending September 28—the highest since May 2024. This demonstrates Moscow’s ability to maintain exports despite sanctions and geopolitical pressures.India continues to balance economic gains from discounted Russian crude with the need to maintain energy security and geopolitical prudence. At the same time, ongoing talks with the US indicate India is exploring opportunities to increase energy purchases from Washington, further diversifying its crude supply basket.