India Increases Russian Oil Imports Despite US Sanctions and Tariffs

The Government of India maintained its position as the second-largest buyer of Russian fossil fuels in October 2025, spending 3.1 billion euro on imports. According to the Centre for Research on Energy and Clean Air, crude oil dominated this expenditure at 81 percent. This surge occurred despite the United States imposing sanctions on major Russian producers Rosneft and Lukoil on October 22, alongside 50% total tariffs on Indian imports to pressure New Delhi to reduce ties with Moscow.

In response to these pressures, Indian state-owned refiners nearly doubled Russian crude volumes. The Rosneft-owned Vadinar refinery in Gujarat increased operating capacity to 90% and pivoted entirely to Russian crude, marking its highest volumes since the full-scale invasion. However, some private companies, including Reliance Industries and HPCL-Mittal Energy Ltd, temporarily halted imports following the sanctions. To stabilize the sector, the Indian government approved a Rs 300 billion support package for Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation to compensate for LPG subsidies.

Fitch Ratings suggests that US and EU sanctions are unlikely to significantly impact the credit profiles of Indian oil marketing companies, as high global spare capacity and refined product spreads may offset the loss of discounted barrels. Meanwhile, the tightening of sanctions is forcing Indian and Chinese refiners to diversify, increasing purchases of Middle Eastern and West African cargoes to ensure energy security.