India’s crude oil imports from Russia fall 11% in Feb amid US sanctions

India’s total crude oil imports in February came in at 4.82 million barrels per day, compared to 5 million bpd in January.

India's crude oil imports from Russia slipped over 11 percent month-on-month in February reflecting the impact of US sanctions on Russian oil entities. The slump in Russian oil flow to India follows a 13 percent month-on-month jump in crude imports from Moscow in January, underscoring the impact on Russian oil flow in the market.

India, currently one of the biggest buyers of Russian oil, imported 1.48 million barrels per day (bpd) of crude oil from Moscow in February, against 1.67 million bpd in the previous month, showed data from commodity market analytics firm Kpler.

The US on January 10 imposed fresh sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, as well as on about 180 tankers that form part of the Eurasian country's shadow fleet to curb Moscow’s revenues that Washington said were used to finance the war against Ukraine.

The imports from Russia are expected to further decline in March as the impact of the US sanctions would be more pronounced in the following months. The oil cargoes from Russia had to be shipped till February 27 under the US sanctions.

Indian oil refiners are struggling to secure Russian oil since the US move. Hindustan Petroleum Corporation Limited (HPCL) chairman told Moneycontrol that the company would be hit by the short-term non-availability of Russian crude oil as it looks to secure oil deals with entities not under sanctions.

The state-run oil marketing company used to procure 35-40 percent of its total requirements from Russia. The share of Russian crude in HPCL's kitty has fallen following fresh US sanctions on Moscow, the official said. Other state-run refiners including Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL) witnessed similar issues in securing Russian oil, according to company officials.

Iraq gained from Russia's loss as the country supplied 6 percent more crude oil to India in February than it did in January. India imported 1.08 million bpd of crude oil from Iraq in February, compared with 1.02 million bpd in the previous month.

However, India’s oil imports from Saudi Arabia fell 3 percent in the month as Riyadh hiked prices for Asian producers after the countries flocked to Middle Eastern suppliers for oil following the US sanctions. Saudi supplied 700,000 bpd of crude oil to India in February, versus 723,000 bpd in the previous month.

Moreover, India’s oil imports from the US slumped 50 percent month-on-month at 147,000 bpd in February.

India’s total crude oil imports in February came in at 4.82 million bpd, compared to 5 million bpd in January. The marginal decline could be attributed to February having the least number of days.

“Indian total product demand started 2025 at a seasonal high, supported by steady consumption growth. January demand reached 5.26 Mbd (million barrels per day), slightly down from December but up year-on-year, driven by robust LPG (liquefied petroleum gas) and transportation fuel sales. Crude imports have remained strong to meet rising domestic needs, reinforcing India's position as a key driver of refined product growth despite expectations of a slower pace compared to 2024,” said Sumit Ritolia, senior oil refining analyst, Kpler.

India diversifies crude sources 

Amid geopolitical uncertainties, India is understood to have diversified its crude oil sources, looking beyond traditional suppliers. The oil import data of February clearly outlines India’s strategy of scouting for alternative sources while keeping lines with trusted suppliers such as Iraq and Saudi Arabia open.

In February, India increased reliance on smaller supplying nations such as Nigeria, Brazil, Angola, Colombia, Venezuela, Qatar and, for the first time, Argentina. BPCL in December bought crude oil from Argentina for February delivery of a one-million-barrel cargo.

Oil minister Hardeep Singh Puri had told Moneycontrol that India is witnessing a fundamental transformation in its relations with global energy players, as it signs record crude import deals. India is currently purchasing crude oil from 40 countries, compared to only 27 supplying nations in 2007, he added.

Puri also emphasised that India’s energy import strategy is dependent on discounts offered by the suppliers, adding that the country is looking to buy the cheapest oil available in the market.