India Drops to Third Largest Buyer of Russian Fossil Fuels in December 2025
January 13, 2026 India has fallen to third place in the global ranking of Russian fossil fuel buyers, as data from European energy analysts show a marked reduction in crude imports from Moscow in December 2025. This shift reflects both market dynamics and geopolitical pressures affecting the global energy trade.
According to the Centre for Research on Energy and Clean Air (CREA), India’s total imports of Russian hydrocarbons including crude oil, coal, and oil products fell to about €2.3 billion in December, down sharply from €3.3 billion in November. This placed India behind China and Turkiye in the latest monthly import rankings.
What Changed in December
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Major refiners in India, including Reliance Industries and state-owned companies, cut back on Russian crude purchases significantly in December. Reliance’s Jamnagar complex alone halved its imports from Russia, contributing to the overall drop.
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Turkiye overtook India as the second-largest importer, buying approximately €2.6 billion worth of Russian fossil fuels during the same period, while China remained the dominant buyer with nearly half of Russia’s export revenues from the top five importers.
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Crude oil accounted for the bulk about 78% of India’s Russian fuel imports in December. Coal and refined products made up the rest.
Why Imports Are Falling
Analysts link the decline to multiple overlapping factors:
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Tighter Western sanctions on major Russian oil firms such as Rosneft and Lukoil have complicated transactions and increased compliance costs. Several Indian refiners adjusted or paused imports in response.
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Although discounted Urals crude remains competitively priced compared with Middle Eastern alternatives, the shrinking price gap has reduced the economic incentive for high-volume Russian purchases.
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Logistical and regulatory complexities, including insurance and shipping challenges tied to sanction regimes, have also influenced refinery procurement strategies.
Context: India’s Role in Russian Energy Trade
India has been a major participant in Russia’s post-Ukraine war energy market. Since 2022, it became one of the largest global buyers of discounted Russian crude, significantly increasing imports as other Western countries pulled back due to sanctions. Over the course of the conflict, India imported roughly €162.5 billion worth of Russian fossil fuels, including around €143.9 billion in crude oil alone.
Despite the recent drop, Russia still supplied about 25% of India’s total crude imports in December, underscoring the continued strategic importance of this relationship for India’s energy security.
Market and Diplomatic Implications
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For Russia, India’s lower ranking introduces a potential vulnerability in export revenues, especially as it seeks stable markets amid ongoing geopolitical tensions.
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For India, reducing dependence on a single source aligns with broader energy diversification strategies but may also increase procurement costs if cheaper Russian barrels are foregone in favor of more expensive alternatives.
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The shift will be watched closely as global energy markets reevaluate supply chains in light of sanctions, price cap enforcement, and shifting consumption patterns worldwide.