Russia's share of India's oil imports hits record high amid US sanction threats

Russia’s share of India’s crude oil imports has reached a record high, accounting for approximately 48% to 55% of the country’s total purchases. This surge follows the 2022 invasion of Ukraine, which saw Western buyers reduce purchases from Moscow, prompting Russian exporters to offer deep discounts to Asian refiners.

Indian refineries have built established supply chains, including specialized shipping, insurance, and payment channels, to handle Russian grades. This infrastructure, combined with competitive pricing and refinery flexibility, has allowed Russia to overtake traditional suppliers like Iraq and Saudi Arabia.

However, these energy flows face potential disruption from the United States. The US Senate recently passed the ‘Lindsey Graham Sanctioning Russia Act of 2026’, a bipartisan bill that would authorize the President to impose tariffs of up to 100% on major buyers of Russian energy. While the measure must still clear the US House of Representatives, it targets the world’s largest purchasers of Russian oil and gas to reduce Moscow’s revenue. Analysts suggest that while the legislation poses a risk, the immediate impact on flows to India and China may depend on how aggressively the administration implements the law and whether exemptions are granted.