Centre Seeks Details On Oil Imports From Russia

The Indian government has instructed the local oil refineries to report on the amount of crude oil purchased from Russia during the last week. There are also rumors that refineries have been ordered to reveal their import data from the US. The government collects this information as part of the preparation for potential trade discussions with the US.

Origin of Russian Oil Imports

The Western countries imposed sanctions on Russia after the latter attacked Ukraine in 2022. Thus, western countries were losing the normal market for their crude oil and, consequently, began to sell it to India at lower prices. So, India stepped up its intake and later on it became the largest importer of Russian oil. As a direct consequence, the share of Russian crude in India’s total import went up from about 1% to almost 40%.

The US and its allies have been monitoring this development with concern. The US has blacklisted oil production companies in Russia and has also placed a hefty tax of 50% on certain Indian goods.| These measures are a part of the US strategy to reduce its trade deficit with India and to apply pressure during trade negotiations.

Government Data Collection

The Petroleum Planning and Analysis Cell (PPAC) has requested refineries to share detailed import data related to Russian and US oil. According to media reports, these directives originated from the Prime Minister's Office. The purpose is to make sure that during the conversations with the American representatives, there is no missing or unverified data.

Recent Decline in Russian Oil Imports

India's imports of Russian oil dropped significantly in December—the lowest level of imports since December 2022. The authorities assured that there was no change in the policy regarding oil imports. The drop, however, is attributed to supply disruptions that are temporary.

Sumit Ritolia, Lead Research Analyst at Kepler, said the drop was due to sanctions on Rosneft and Lukoil. He added that this appears to be a temporary adjustment. According to him, as new intermediaries emerge and supply systems stabilize, imports from Russia are likely to rise again from January 2026.