India's €2.5 Billion Russian Oil Secret: Why Moscow's Oil Keeps Flowing Despite Sanctions!

Energy

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Updated on 16 Nov 2025, 06:44 am

India continued its significant oil purchases from Russia in October, spending €2.5 billion on crude oil. This figure remained consistent with September's spending, positioning India as the second-largest buyer of Russian fossil fuels, trailing only China, according to the Centre for Research on Energy and Clean Air (CREA).

The substantial purchases come despite recent US sanctions imposed on October 22 against Rosneft and Lukoil, two of Russia's largest oil producers, aimed at cutting off war funding. These sanctions have led some Indian companies, including Reliance Industries, HPCL-Mittal Energy Ltd, and Mangalore Refinery and Petrochemicals Ltd, to pause their imports from Russia for the time being.

Russia exported 60 million barrels of crude oil in October, with Rosneft and Lukoil contributing 45 million barrels. CREA's report indicated that India's total spending on Russian fossil fuels in October was €3.1 billion, with crude oil making up 81% (€2.5 billion), followed by coal and oil products.

India's reliance on Russian oil has dramatically increased since the February 2022 Ukraine invasion, with imports surging from under 1% to nearly 40% of its total crude oil imports, largely due to steep discounts offered by Russia as Western demand decreased. Notably, India's Russian crude imports saw an 11% month-on-month increase in October, with private refiners accounting for over two-thirds of the total.

The Rosneft-owned Vadinar refinery in Gujarat, though sanctioned by the EU and UK, increased its production to 90% in October and has been importing crude solely from Russia since July. Their Russian imports rose 32% month-on-month to their highest volumes since the invasion, though overall exports dropped significantly.

Impact This news has a considerable impact on Indian energy companies, global oil markets, and India's foreign policy decisions regarding energy security and sanctions compliance. It highlights the complex balancing act India performs to secure affordable energy while navigating international geopolitical pressures. Rating: 7/10

Difficult Terms Explained: Crude oil: Raw, unrefined petroleum extracted from the ground. Fossil fuels: Natural fuels such as coal, oil, and gas, formed in the geological past from the remains of living organisms. Sanctions: Penalties imposed by one country or group of countries on another, typically for political or economic reasons. Refiners: Industrial plants that process crude oil into finished products like gasoline, diesel, and jet fuel. Rosneft and Lukoil: Major Russian state-controlled oil companies. Urals crude: A specific blend of crude oil produced in Russia, often used as a benchmark for Russian oil prices. Brent: A major global benchmark price for crude oil, widely used in oil contracts. Year-on-Year (YoY): A comparison of a value from one period to the same period in the previous year. Month-on-Month (MoM): A comparison of a value from one month to the previous month.