Reliance potentially abstains from Russian oil in line with EU sanctions, with Mukesh Ambani considering sourcing oil from the UAE instead.
In the midst of global uncertainties, India's Ministry of External Affairs has reiterated that securing energy needs remains an "overriding priority" for the country, guided by available offers and the "prevailing global circumstances". This priority is evident in the nation's oil import landscape, which, as of mid-2025, sees Russia as the top crude oil supplier.
According to recent data, India imports nearly 35% of its overall oil supplies from Russia during the first half of 2025, with imports reaching an 11-month high of about 2.08 million barrels per day (bpd) in June 2025. This equates to roughly 40% of India's total crude imports, a significant reliance driven by significant pricing discounts on Russian crude compared to other sources, as well as operational and geopolitical factors that favor Russian oil for Indian refiners.
However, India has been actively diversifying its oil import sources. The country's supplier base has expanded from about 27 countries before the Ukraine conflict to around 40 countries now. Important alternative suppliers include Brazil, Canada, West Africa, Guyana, and the United States, the latter being the fifth-largest supplier with around 300,000 bpd and growing.
Union Minister Hardeep Singh Puri has expressed confidence, stating that he is "not worried at all" and assured that India would secure alternative sources if necessary. The Oil Minister has downplayed concerns about supply shocks, stating India can revert to its prior sourcing patterns where Russian oil was below 2% of imports. The Indian Oil Corporation also confirms readiness to adjust procurement accordingly.
Despite this heavy reliance, India has faced geopolitical pressures. The U.S. administration has threatened punitive tariffs on countries continuing energy trade with Russia. India maintains that energy security is an existential issue not limited to Europe and resists being pressured to reduce ties with Russia.
New Delhi has emphasized the need to avoid "double standards" in the face of potential 100% secondary sanctions from the US and NATO. Fresh EU sanctions have been imposed on Rosneft's India refinery, adding to the complexities of the global oil trade landscape.
In summary, India's oil import landscape reflects a continued heavy reliance on discounted Russian crude, balanced by an increasingly diversified global sourcing strategy and political determination to secure energy supplies amid geopolitical uncertainties. The ongoing efforts to end the Ukraine war by September may provide further clarity for India's oil import decisions.
- The finance sector has shown increased interest in the ongoing geopolitical tension between India and Russia, given the high volume of oil imports from Russia and the potential impact on the national economy.
- As global technology advances and internet penetration increases, education-and-self-development platforms have started to propose courses on understanding the economic implications of casino-and-gambling industries in relation to the oil market.
- Weather forecasts have become crucial for Indian refiners, as changes in the climate could disrupt the transportation of crude oil, including from key suppliers such as Russia, and affect the overall market supply and subsequent prices.
- In the midst of worldwide economic upheavals, the Indian government has underscored the importance of infrastructural development, simultaneously seeking alternative oil suppliers to reduce dependence and ensure energy security.
