Russia overtook US as India’s main crude supplier in FY22, now matching coal exports as well

India is set to become one of the most tariffed nations globally following the 25 percent tariff plus penalty imposed by US President Donald Trump, with the move rooted partly in geopolitical tensions—particularly India’s deepening economic and strategic ties with Russia.

“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump posted on Truth Social, suggesting that India’s alignment with Moscow was a key driver of the new tariff regime.

India has emerged as a critical market for Russian energy exports, especially in crude oil and thermal coal, where Russia has either surpassed or is close to matching US export volumes.

Oil: From reversal to dominance

In FY22, the US exported four times as much crude oil to India as Russia. But following the sanctions owing to Russia-Ukraine conflict, trade dynamics flipped. In FY23, Russia’s share of India’s oil imports surged to 19.1 percent, while the US share rose to 6.3 percent.

The gap widened further in FY24, with Russia accounting for nearly 10 times the US volume. India imported crude worth $50.3 billion from Russia, while US imports were just $13.9 billion. Russia’s share jumped to 32.3 percent in the first two months of FY26, while the US, despite a recovery, stood at 9.54 percent—just one-third of Russia’s share.

Coal: Russia catching up

Russia has also come close to overtaking the US in thermal coal exports to India. In April–May 2025, Russia’s share in India’s thermal coal imports reached 13.4 percent, nearly matching the US at 13.7 percent.

For comparison, in FY18 and FY19, US coal exports to India were nearly four times those of Russia. In FY25, the US held an 11.1 percent share, only slightly ahead of Russia’s 10.7 percent—a narrowing gap that signals Russia’s growing foothold.

Defence: Long-standing dependence
Beyond energy, Russia remains India’s top defence supplier. Between 2019 and 2023, Russia accounted for 36 percent of India’s total defence imports. While this is down from 76 percent during 2009–2013, the decline has not significantly benefited the US, whose share rose only marginally from 8 percent to 13 percent over the same period and has since plateaued.