India has significantly boosted its crude oil imports from Russia, reaching 2 to 2.2 million barrels per day (bpd) in June 2025, the highest level in two years. This surge has propelled Russian oil to surpass combined Middle Eastern supplies, thanks to substantial discounts and shifting geopolitical dynamics.
This blog explores the reasons behind the increased imports, the implications for India’s energy security, and how it reshapes global oil trade trends.
India’s Russian Oil Imports Hit Record High
According to industry trackers and global trade analysts, Indian refiners imported over 2 million bpd of Russian oil in June, up from 1.96 million bpd in May 2025. This figure now outpaces imports from traditional suppliers like Saudi Arabia, Iraq, and UAE combined.
This increase in Russian imports is largely due to favorable pricing and delivery terms compared to other global sources.
Key Factors Driving the Surge
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Steep Price Discounts
Russia has offered Indian buyers Urals crude at a deep discount, trading around $54–$60 per barrel, compared to higher-priced Brent crude. This makes Russian oil a highly attractive option for cost-conscious Indian refiners. -
Low Freight Costs
Freight charges for tankers from Russia’s Baltic ports to India have declined significantly—from $8 million earlier in 2025 to around $5.5–5.7 million per shipment, further reducing the effective cost per barrel. -
Geopolitical Tensions in the Middle East
The rising tension between Iran and Israel has created uncertainty over Gulf oil supply routes. Indian refiners are therefore diversifying sources to ensure stable long-term access to energy.
Summary Table: Russian Oil Imports to India
| Parameter | Details |
|---|---|
| Volume Imported (June 2025) | 2.0 – 2.2 million barrels/day |
| Discounted Price Range | $54 – $60 per barrel |
| Main Ports of Origin | Baltic, Black Sea, Arctic Routes |
| Compared Gulf Import Volume | Less than Russian supply |
| Previous High (in 2023) | ~1.9 million barrels/day |
Implications for India’s Economy and Energy Strategy
- Reduced Import Bills: Lower oil prices ease pressure on India’s trade deficit and inflation.
- Diversified Supply: Less reliance on Gulf nations helps India manage supply disruptions better.
- Refinery Margins Improve: Indian refiners enjoy wider profit margins due to lower input costs.
However, this shift also raises concerns about Western sanctions and long-term diplomatic challenges, particularly with G7 nations.
Looking Ahead
India is expected to continue leveraging discounted Russian crude as long as global prices remain volatile. However, refiners are also watching evolving EU sanctions on Russian oil freight and the global stance on shadow fleets and third-party shipping channels.
Final Words
India’s record Russian oil imports in June 2025 mark a strategic energy realignment. As geopolitical shifts redefine trade routes and partnerships, India’s approach balances economic pragmatism with energy security.
Stay connected for more insights into India’s evolving energy landscape and how global politics shape oil markets.
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