India has significantly increased its imports of Russian oil since the invasion of Ukraine, becoming Russia’s largest customer, with imports rising from about 3% to 50% of its total crude oil supply. This shift has drawn criticism from the U.S., leading to tariffs on Indian goods due to concerns that these purchases are funding Russia’s military actions. In 2025, Russian crude oil accounted for about 50% of Reliance Industries’ total crude imports. India imported approximately 1.5 million barrels per day in July 2025, making it Russia’s largest customer.
The U.S. government has reacted strongly to India’s increasing reliance on Russian oil. President Donald Trump has imposed a 25% tariff on Indian imports, citing concerns that these purchases are funding Russia’s military actions in Ukraine. The U.S. Treasury Secretary has accused India of “profiteering” from cheap Russian oil, claiming that Indian refiners buy oil at a discount and resell refined products at higher prices.
This is how “profiteering” of India works. India imports large volumes of Russian crude at discounted rates, refines it, and then sells the resulting petroleum products, including to countries with sanctions on Russia, generating significant profits. While precise figures vary by reporting period, India is a major purchaser of Russian crude, with Russian oil accounting for up to 40-45% of its total imports at times. This strategy allows India to export products to high-value markets, although it carries risks of US tariffs and penalties.
The profits from this refining and export model are substantial, although exact figures are not readily available in public reports. India’s Russian oil purchases have remained a constant flow, contributing to Russia’s continued ability to sell its crude. In a report from early 2025, India exported $6.65 billion in oil products derived from Russian oil, including to sanctioning nations.
The U.S. has criticised India’s Russian oil trade and has imposed tariffs and penalties on Indian imports and goods. The EU has also banned imports of refined products derived from Russian-origin crude, potentially impacting India’s export market.
Despite U.S. criticism and tariffs, India has maintained its stance on continuing to import Russian oil. Indian officials argue that these imports are essential for stabilising global energy markets and meeting domestic energy needs. India’s imports of Russian oil have reached approximately ₹132 billion since the war began, constituting about 20% of Russia’s oil export earnings during this period.
India’s strategic relationship with Russia, particularly in defense and energy, remains a complex and evolving issue amid geopolitical tensions. India’s decision to import Russian oil is largely driven by economic factors, including the discounted prices offered by Russia due to Western sanctions. This has made Russian crude more attractive compared to traditional suppliers like Saudi Arabia and Iraq, which have been cutting back on production to maintain higher prices. Analysts suggest that while India could revert to sourcing oil from these traditional suppliers, it would likely face higher costs and logistical challenges.
The shift towards Russian oil has significant implications for India’s energy security and its diplomatic relations with the U.S. and other Western nations. As India continues to balance its energy needs with geopolitical pressures, it faces a complex dilemma: whether to maintain its current oil sourcing strategy or to diversify its imports to mitigate potential fallout from U.S. tariffs and sanctions.
In conclusion, India’s increasing imports of Russian oil reflect a commercial approach for profit maximisation through exports amid a rapidly changing geopolitical landscape, while also highlighting the tensions between economic interests and international diplomatic relations says Praveen Dalal.