India has imported Russian crude oil worth approximately 144 billion euros since the Ukraine war began in February 2022, according to a report from the Centre for Research on Energy and Clean Air (CREA). This positions India as the second-largest buyer of Russian oil globally, trailing only China.

The CREA analysis highlights how India stepped in as the primary purchaser of discounted Russian crude after Western nations imposed sanctions on Moscow following its invasion of Ukraine. Over this period, Russia's total earnings from global fossil fuel sales have reached around 1 trillion euros, funds that CREA claims continue to support the conflict.

China leads with purchases totalling 293.7 billion euros, including 210.3 billion euros in oil, 42.7 billion euros in coal, and 40.6 billion euros in gas, up to 3 January 2026. India followed with 162.5 billion euros in fossil fuels, comprising 143.88 billion euros in oil and 18.18 billion euros in coal.

The European Union, despite sanctions, spent 218.1 billion euros on Russian fossil fuels: 106.3 billion euros on oil, 3.5 billion euros on coal, and 108.2 billion euros on gas. CREA notes that one-fifth of Russia's trillion-euro revenue stems from EU imports, largely gas, which remains unsanctioned.

G7 nations and the EU responded to the invasion with sanctions and export controls, but these lack UN Security Council backing. Countries like China, India, Iran, the United Arab Emirates, Israel, Saudi Arabia, Turkey, and Serbia have not endorsed these measures, allowing Russian energy flows to persist.

Russian oil continues entering the EU via Hungary and Slovakia, supported by Druzhba pipeline derogations. CREA points to Russia's shadow fleet expansion and rerouting of refined products as key factors sustaining trade, even as EU imports of Russian crude fell after the December 2022 embargo and February 2023 refined products ban.

India, the world's third-largest oil importer, traditionally depended on Middle Eastern supplies. Post-invasion, it ramped up Russian imports dramatically, with Russia's share surging from under 1 per cent to nearly 40 per cent of India's total crude basket amid Western shunning and discounts.

At its peak, Russia supplied about 35 per cent of India's crude needs before fresh US sanctions on Rosneft and Lukoil took effect on 22 November 2025. India's daily Russian oil purchases from non-sanctioned entities now stand at around 72.92 million euros as of early January 2026, down from 130.49 million euros in late November and a high of 189.07 million euros in July 2023.

Major Indian refiners have reacted swiftly to the sanctions. Reliance Industries, the top buyer, has halted Russian oil imports, as have Hindustan Petroleum Corporation Ltd (HPCL), HPCL-Mittal Energy Ltd, and Mangalore Refinery and Petrochemicals Ltd.

IOC and Bharat Petroleum Corporation Ltd persist in sourcing from non-sanctioned Russian entities. Nayara Energy, backed by sanctioned Rosneft and already targeted by EU measures, continues procuring from Rosneft and others.

While the EU bans fuels derived from Russian crude, Australia, Canada, and the US have not followed suit. Reliance, a key exporter to Europe, has pledged to cease using Russian oil for such shipments.

This shift underscores India's pragmatic energy security strategy amid global realignments, balancing discounted access against escalating geopolitical pressures. Russia's adaptability via shadow fleets and new markets has prolonged its revenue stream despite sanctions.

CREA's data reveals the limits of Western-led restrictions, as non-aligned buyers like India fill the gap left by Europe. India's reduced reliance on Russian oil may accelerate diversification efforts, potentially towards Middle Eastern or alternative suppliers.

The report arrives amid tightening US enforcement, signalling potential further declines in Russian oil's Indian market share. For India, this evolution tests its refining capabilities and import economics in a volatile landscape.

Based On PTI Report