India’s $168 Billion Russian Oil Bet Since the Ukraine War

Since the start of the Russia–Ukraine war in February 2022, India has emerged as one of the biggest buyers of Russian crude oil. According to estimates by the Centre for Research on Energy and Clean Air (CREA), India has imported around $168 billion worth of Russian oil during this period, underlining how deeply global energy trade has been reshaped by the conflict.

Measured in European currency terms, this translates to roughly €144 billion in crude oil imports. The scale of these purchases places India second only to China among the world’s largest buyers of Russian oil since the war began.

Why India Turned to Russian Crude?

India is the world’s third-largest crude oil importer, heavily dependent on overseas supplies to meet domestic energy demand. When Western countries imposed sanctions and reduced purchases of Russian energy, Russian oil began trading at steep discounts to global benchmarks.

Indian refiners seized this opportunity. Cheaper Russian crude offered a way to manage inflation, protect fuel affordability, and support economic growth at a time of global volatility. As a result, Russia quickly became India’s single largest crude supplier during peak periods, at times accounting for nearly one-third of India’s total oil imports.

India’s Role in Global Russian Oil Flows

India’s increased intake played a crucial role in keeping Russian oil flowing into global markets even as Europe and parts of the West pulled back. While these barrels were largely redirected away from sanctioned regions, they continued to find buyers in Asia, reshaping global energy trade routes.

This shift highlights how energy security priorities often override geopolitical pressures, especially for fast-growing economies with large fuel needs.

Revenue Impact for Russia

CREA estimates that Russia has earned over €1 trillion from global fossil fuel exports - including oil, coal, and gas, since the start of the invasion in February 2022. India’s purchases form part of this broader revenue stream, which analysts say has helped sustain Russia’s economy and war financing despite sanctions.

While India is only one of several buyers contributing to this figure, its scale makes it a significant participant in the global fossil fuel trade linked to Russia.

Signs of Change Emerging

Recent developments suggest India’s buying strategy may be evolving. Indian refiners have reportedly scaled back purchases of Russian crude following new U.S. sanctions on major Russian oil producers such as Rosneft and Lukoil.

At the same time, India is said to be engaging diplomatically with the United States, signalling efforts to show moderation in Russian oil imports as part of broader trade and strategic discussions.

What This Means Going Forward

India’s large-scale imports of discounted Russian crude helped stabilize domestic energy costs during a period of global disruption. However, growing geopolitical pressure and tightening sanctions are now influencing procurement decisions.

Going ahead, India may seek a more balanced approach, diversifying supply sources while protecting energy security, as global scrutiny on Russian energy trade intensifies.