admin
The bill targets Russia’s energy sector and its so-called shadow fleet of tankers used to transport oil, while also giving the US President additional tariff powers over major buyers of Russian energy. India has emerged as one of Russia’s largest crude customers since the Ukraine war began.
From marginal purchases to a major source
Russia launched a full-scale invasion of Ukraine in February 2022. As Western countries reduced purchases of Russian oil and sanctions narrowed Moscow’s pool of buyers, Russian crude became available to Indian refiners at steep discounts. This gave refiners an incentive to increase purchases at a time when India remained heavily dependent on imported crude.
According to a recent report by Bloomsbury Intelligence and Security Institute (BISI), India’s share of Russian oil in its crude imports rose from about 0.2 per cent before the war to around 35-40 per cent in 2025.
The Trump effect
Russian oil imports fall in early 2026
Reuters reported that Russian crude accounted for 21.2 per cent of India’s total oil imports in January, the lowest since late 2022. Kpler data showed India’s Russian crude imports at 1.09 million bpd in January and 1.04 million bpd in February 2026.
Under US tariff pressure, India increased purchases from the Middle East, South America and Western suppliers. On January 5, Trump again warned that Washington could raise tariffs if India did not curb its Russian oil purchases.
West Asia conflict reverses the decline
The supply equation changed again after the conflict in West Asia escalated on February 28, disrupting energy shipments through the Strait of Hormuz, a crucial route for India’s supplies from traditional West Asian producers. The disruption increased the incentive for Indian refiners to secure barrels from sources less dependent on the strait, including Russia.
Washington also temporarily relaxed some restrictions as it sought to prevent the disruption from triggering a broader global oil shortage. In March, the US issued short-term waivers allowing Indian refiners and other buyers to purchase certain Russian oil already at sea. US Treasury Secretary Scott Bessent termed the move a “deliberately short-term measure” aimed at keeping oil flowing in the global market. The waiver was temporary and was subsequently allowed to expire.
Even after the waiver ended, continuing uncertainty over West Asian supplies kept Russian crude attractive as Indian refiners sought alternative barrels. Kpler data showed India’s Russian crude imports at 2.82 million bpd in June, a historic high.
In August, Russian crude imports stood at 2.08 million bpd.
The latest US sanctions bill now adds another layer of uncertainty. India’s Russian oil purchases have repeatedly responded to a combination of price, supply security and US policy since 2022; the proposed tariff powers could once again alter that calculation.
GIPHY App Key not set. Please check settings