India, one of the world’s largest crude oil importers, has significantly increased its purchases of Russian crude since the invasion of Ukraine, benefiting from discounted supplies that became available after Western restrictions reduced Russia’s access to traditional markets.
The arrangement has helped Indian refiners secure a steady supply of crude while reducing the cost of one of the country’s largest import requirements.
However, the continuation of these purchases could now create a new geopolitical and economic challenge for India.
On Wednesday, the U.S. House of Representatives passed legislation that would give President Donald Trump broad powers to impose sanctions on Russia and introduce import tariffs of up to 100% on countries purchasing Russian oil and gas.
The legislation is expected to be sent to President Trump for consideration. India and China could face significant consequences if such measures are implemented because of their large-scale purchases of Russian energy.
According to the Centre for Research on Energy and Clean Air (CREA), China accounted for around 50% of Russia’s crude oil exports between December 2022 and August 2026, while India accounted for 37%. Turkey and the European Union each accounted for about 5%.
Data from the Delhi-based Global Trade Research Initiative (GTRI) shows that Russia supplied crude oil worth $40.8 billion to India during the 2026 fiscal year, accounting for 30.3% of India’s total crude oil import bill of $134.7 billion.
Russian crude also accounted for more than half of India’s total crude oil imports in July, highlighting the country’s growing reliance on Russian supplies.
The proposed US measures could therefore have significant implications for India’s energy costs, refining sector and broader trade relations if sanctions or tariffs targeting buyers of Russian oil are ultimately imposed.
