Reporting

India’s Russian Oil Imports Hit Record Highs Before Sharp August Slump

NEW DELHI — India’s imports of Russian crude oil surged to historic highs in July 2026 before plummeting by more than 30 percent in August, according to energy tracking data, exposing a volatile trade corridor where a fuel-starved Moscow has begun importing refined gasoline back from Indian refiners.

Data compiled by the Centre for Research on Energy and Clean Air (CREA) shows that India's purchases of Russian crude hit consecutive records in June and July, peaking at 2.8 million barrels per day (mbpd) and accounting for over 50 percent of India's total oil imports.

However, shipping data compiled by Kpler and reported by Business News revealed that Russian crude flows to India slumped 32 percent in August to 1.9 mbpd due to planned maintenance at Indian refineries and Russian export constraints.

The trade dynamic has also seen an unusual reversal; as Ukrainian drone strikes severely damaged Russian domestic refining capacity, Russia was forced to import nearly 270,000 metric tonnes of refined fuel in August, with one-third of it originating from India, according to Reuters.

These fuel imports from India, particularly from the Rosneft-backed Vadinar refinery, were necessitated by acute domestic shortages within Russia, The Moscow Times reported.

Meanwhile, Ukrainian long-range strikes have expanded to target Russian economic and logistical infrastructure, including retail distribution networks like Ozon, where a Samara region facility was destroyed in a campaign dubbed "Wild Berries 2," according to Ukrainian social media broadcasts.

These reports indicate that Russian authorities have resorted to installing protective netting around fuel stations, power substations, and oil depots to mitigate drone damage, even as Russian President Vladimir Putin publicly maintains the strikes have caused no significant disruptions.

The strikes have also targeted Crimea, reportedly leaving the peninsula in the dark for days, while civilian casualties continue to mount, including a teenager on a bicycle who lost his life in Kramatorsk, according to local social media reports.

The summer surge in Indian purchases of Russian crude was heavily accelerated by geopolitical disruptions in the Middle East, which restricted traditional Persian Gulf oil shipments and forced Indian refiners to pivot to Russian Urals crude to guarantee domestic energy security, according to Press Insider.

This pivot occurred despite escalating pressure from Washington, where lawmakers introduced the "Lindsey O. Graham Sanctioning Russia and Iran Act of 2026" threatening 100 percent tariffs on countries purchasing Russian oil, as reported by The Hindu.

The narrowing discount on Russian Urals crude relative to global benchmarks has begun to limit the financial benefit of these purchases for Indian refiners, according to India Today.

Analysts suggest that Indian refiners are becoming increasingly cautious as the threat of secondary U.S. sanctions intensifies, which contributed to the sharp pullback in August import volumes, The Print reported.

Nevertheless, India's role as a "swing supplier" of refined petroleum products to Western nations that have banned direct Russian imports is expected to persist, according to The Times of India.

Indian state refiners are scheduled to complete their planned refinery maintenance turnarounds by the end of September, which will test whether India's appetite for Russian crude rebounds or remains subdued under tightening Western sanctions pressure.