Crude oil: Why did India's crude oil imports fell by 11% from Russia in Feb 2025?Crude oil: Why did India's crude oil imports fell by 11% from Russia in Feb 2025?

India’s crude oil imports from Russia dropped by over 11% month-on-month in February 2025, reflecting the impact of fresh US sanctions on Russian oil entities. This decline follows a surge in January, highlighting shifting dynamics in global oil trade.

According to data, India imported 1.48 million barrels per day (bpd) of Russian crude in February, compared to 1.67 million bpd in January. The slump is primarily attributed to tighter US restrictions on Russia’s oil producers and shipping networks.

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US Sanctions Hit Russian Oil Supply

On January 10, the US imposed sanctions on major Russian oil producers, including Gazprom Neft and Surgutneftegas, alongside 180 shadow fleet tankers. These measures aimed to curb Moscow’s revenue, which Washington claims is used to finance the ongoing war in Ukraine.

The impact of these sanctions is expected to intensify in March as oil shipments from Russia were allowed only until February 27. Indian refiners are now facing challenges in securing Russian crude, forcing them to explore alternative sourcing options.

Indian Refiners Reduce Russian Oil Dependence

State-run Hindustan Petroleum Corporation Limited (HPCL) previously sourced 35-40% of its total crude from Russia. However, its reliance on Russian oil has declined post-sanctions. Other state refiners, including IOCL and BPCL, are facing similar procurement difficulties.

Iraq Gains from Russia’s Loss

While Russian crude imports fell, Iraq capitalized on the opportunity by supplying 6% more oil to India in February than in January. Indian refiners imported 1.08 million bpd from Iraq, up from 1.02 million bpd, reinforcing Iraq’s role as a key supplier.

Saudi Oil Imports Decline as Prices Rise

India’s oil imports from Saudi Arabia declined by 3% in February as Riyadh raised prices for Asian buyers. Saudi Arabia supplied 700,000 bpd, down from 723,000 bpd in January, as Indian refiners adjusted sourcing strategies to manage costs.

US Oil Shipments to India Fall by 50%

India also witnessed a sharp 50% decline in crude imports from the US, with volumes falling to 147,000 bpd in February. This signals India’s shift towards diversifying oil sources amid evolving geopolitical and market conditions.

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Total Oil Imports Show Marginal Decline

Overall, India’s total crude imports dropped slightly to 4.82 million bpd in February from 5 million bpd in January. The shorter month contributed to this decline, alongside reduced Russian supply and shifts in global oil sourcing trends.

To counter supply disruptions, India is actively diversifying its crude oil sources. In February, refiners increased reliance on smaller suppliers like Nigeria, Brazil, Angola, Colombia, Venezuela, and Qatar, while BPCL secured its first-ever oil cargo from Argentina.

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