Home » India Shifts Energy Strategy: US Crude Imports Surge While Russian Oil Purchases Decline

India Shifts Energy Strategy: US Crude Imports Surge While Russian Oil Purchases Decline

by admin477351

India’s energy import landscape underwent a significant transformation in 2025, with petroleum crude imports from the United States jumping by over 65% to $8.2 billion during April-December 2025. This remarkable increase contrasts sharply with the decline in Russian crude imports, which fell by more than 17% from approximately $40 billion to $33.1 billion during the same period, according to official government data.

December 2025 marked a particularly notable shift in India’s energy sourcing strategy. Among the country’s top five petroleum crude suppliers—Russia, Iraq, the United Arab Emirates, Saudi Arabia, and the United States—Russia was the sole supplier to experience a contraction in imports. Russian crude imports decreased by 15.15% to $2.71 billion in December 2025, down from $3.2 billion in December 2024.

In stark contrast, other major suppliers witnessed robust growth in their exports to India. Saudi Arabia recorded the most impressive surge with a 61% year-on-year increase, reaching $1.75 billion in December 2025. US crude imports grew by 31% to $569.30 million, while Iraq saw a modest 4.56% increase to $2.37 billion. The UAE contributed $1.65 billion worth of crude, representing a 6% annual increase.

Industry analysts suggest that the decline in Russian crude imports accelerated following the imposition of a 25% punitive tariff on Indian goods by the United States, effective August 27, 2025. This measure was designed to discourage India from purchasing sanctioned Russian petroleum. Prior to the tariff implementation, India imported Russian crude worth $3.62 billion in July 2025, but this figure plummeted to $2.71 billion by December 2025—a sharp 35% month-on-month decline.

India’s total crude imports from approximately 39 countries reached $11.29 billion in December 2025, representing a 9.1% increase compared to December 2024’s $10.34 billion. For the April-December 2025 period, cumulative imports totaled $105.10 billion, slightly lower than the $109.33 billion recorded during the same period in 2024. Government officials emphasized that ensuring energy security for 1.4 billion Indians remains the supreme priority, with diversification of energy sources being central to this strategy.

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