Russian oil shipments to India drop to three-year low - Bloomberg
Russian oil shipments to India fall to lowest level (photo: Getty Images)
Russian oil shipments to India in December may reach the lowest level in three years. Still, volumes are likely to rise early next year after purchases resume at the largest refinery, Bloomberg reports.
According to the analytical firm, shipments in December are expected to total about 1.1 million barrels per day — the lowest level since November 2022. This is still higher than the forecast made by Indian officials earlier this month following the latest US restrictions on Russian energy supplies.
Bloomberg notes that India's demand for Russian oil has declined in recent months due to tighter US oversight of trade.
Shipments fell in July, then partially recovered when some refineries, including Indian Oil Corp. and Bharat Petroleum Corp., resumed purchases at discounted prices.
India's largest importer, Reliance, suspended purchases after US sanctions against Rosneft and Lukoil in late October, but has now resumed buying from suppliers that are not on the sanctions list.
It is noted that Russian oil is used at Reliance's Jamnagar refinery in Gujarat for the domestic market. Shipments in the second week of December slowed to 712,000 barrels per day and then increased. Indian officials had forecast 800,000 barrels per day.
"The decline in December imports follows the pause by Reliance — previously the biggest buyer — while Kpler figures show lower flows to the HPCL-Mittal Energy Ltd. Mundra oil terminal, and Mangalore Refinery and Petrochemicals Ltd. taking no barrels this month for the first time since September 2022," the report says.
An additional boost to shipments could come from Nayara Energy Ltd., which plans to postpone scheduled maintenance at its Vadinar refinery, potentially allowing for increased purchases of Russian crude oil.
Russia–India cooperation
India has felt serious economic consequences from cooperation with Russia amid its war against Ukraine and intense sanctions pressure from the United States and the European Union.
In 2025, the United States raised tariffs on most Indian goods to 50%, partly linking the additional duties to India's purchases of Russian energy and weapons. This has strongly affected Indian companies that actively export to the US market.
In November, it became known that Indian energy giant Reliance Industries had completely halted imports of Russian oil in compliance with international sanctions.
At the same time, in December, Reliance resumed purchases of Russian crude oil from non-sanctioned suppliers at discounted prices and is directing it to its Jamnagar refinery.
