Crude Oil Purchases Drive Sharp Decline in Bilateral Trade
India’s January goods imports from Russia dropped 40.48% to $2.86 billion from $4.81 billion in January 2025, according to the most recent data provided on Monday. This decline was mostly caused by Indian refiners dramatically reducing their purchases of Russian oil.
An estimated $2.3 billion, or maybe less, was imported in the month, based on sources with knowledge of the situation who asked to remain nameless. Petroleum crude typically makes up roughly 80% of India’s total item imports from Russia. Trade data for January 2026 was provided by the government on Monday, although data by product lines and nations has not yet been made public.
Beyond Crude Oil, Other Important Imports from Russia
In addition to crude, India imports from Russia fertilizer, iron, paper, beans, pearls, precious and semi-precious stones, coal, coke, and some petroleum products.
Starting in April 2025, when the US government unveiled its Liberation Day tariffs, the decline in Russian crude oil imports in 2025–2026 peaked at $4.73 billion. Additionally, Washington exerted pressure on India to refrain from purchasing Russian oil.
Trade Modifications, US Tariffs, and Diplomatic Pressure
The United States then levied a 25% punitive tax on Indian goods exports starting on August 27. This was effectively a punishment for buying Russian oil. As a result, India imported $3.32 billion worth of Russian crude in September, a roughly 30% decrease from April.
The people mentioned above stated that the decrease in Russian shipments is consistent with Indian refiners’ declarations that they no longer purchase Russian oil. The largest private refiner in India, Reliance Industries Ltd. (RIL), responded to a January 9 news article by stating on social media platform X that it did not anticipate receiving “any Russian crude oil” supplies in January. RIL has an annual capacity of around 68 million tonnes for refining.
Sift to Venezuelan Crude and Prospects
One of the people mentioned above stated, “It is expected that the decline in Russian merchandise imports will be more stronger in the upcoming months as Indian refiners will switch to purchasing Venezuelan crude at a lower cost than Russian oil.” The US offer to purchase Venezuelan crude is being contemplated by Indian refiners, he continued. President Donald Trump of the USA briefed reporters on board the Air Force One is the purchase of Venezuelan oil by India. India was a major customer of Venezuelan crude prior to US sanctions on the country.
The 25% punitive tariff that the Trump administration had placed on Indian goods in its market was lifted on February 6 after India “committed to stop directly or indirectly importing Russian Federation oil” and pledged to buy US energy products. The USA is also eager for India to start buying electricity from Venezuela again.
India purchased $14.10 billion worth of oil from the South American nation in 2012–2013. According to government data, Venezuelan oil imports steadily declined for a variety of geopolitical reasons and reached nil in 2021–2022.
However, Russian oil shipments to India, which were nil in 2011–12, suddenly increased to almost $31 billion in 2022–23. It was $46.49 billion the next year (2023–2024), and it reached $50.28 billion in 2024–2025.
FAQs
1. Why did India’s imports from Russia drop by 40.48% in January 2026?
India’s imports from Russia declined mainly due to a sharp reduction in crude oil purchases by Indian refiners. Petroleum crude accounts for nearly 80% of India’s total merchandise imports from Russia.
2. How much did India import from Russia in January 2026?
India imported goods worth $2.86 billion from Russia in January 2026, compared to $4.81 billion in January 2025.
3. What products does India import from Russia besides crude oil?
Apart from crude oil, India imports fertilizers, coal, coke, iron, paper, beans, pearls, precious and semi-precious stones, and certain petroleum products from Russia.
4. Did US pressure impact India’s Russian oil imports?
Yes, the United States imposed a 25% punitive tariff on Indian goods and reportedly pressured India to reduce Russian oil purchases, influencing the decline in imports.
5. Are Indian refiners completely stopping Russian oil purchases?
Major refiners, including Reliance Industries Ltd., indicated they do not expect to receive Russian crude supplies, signaling a significant reduction in purchases.
6. Is India shifting to Venezuelan crude oil?
Sources suggest Indian refiners may switch to Venezuelan crude due to lower costs, and discussions have reportedly taken place regarding potential purchases.
7. How much Russian oil did India import in recent years?
Russian oil imports surged from near zero in 2011–12 to $31 billion in 2022–23, $46.49 billion in 2023–24, and $50.28 billion in 2024–25 before the recent decline.
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