India’s oil imports from Russia hit 38-month low, Pg1

Key Highlights:

• India's crude oil imports from Russia decreased to a 38-month low of $2.7 billion in December 2025.
• Russian oil accounted for less than 25% of India's total oil imports in December 2025, a decrease from 34% the previous month.
• Oil imports from the U.S. increased by nearly 31% compared to December 2024, totaling $569.3 million.
• India sourced crude oil from 19 countries in December 2025, compared to 16 countries in December 2024, indicating diversification.

Detailed Insights:

• The decrease in Russian oil imports is attributed to India's strategy of diversifying its energy sources, considering market conditions and international dynamics.
• Despite claims by the U.S. President about India ceasing Russian oil purchases in exchange for tariff reductions, India has neither confirmed nor denied these assertions.
• The cost-effectiveness of importing oil from Russia, due to discounts and shorter shipping distances, remains a key factor in India's procurement decisions.
• In December 2025, India paid an average of $506.7 per tonne for oil from the U.S. and $469.4 per tonne for oil from Russia.
• Replacing Russian oil entirely with Venezuelan oil would only be commercially viable if Venezuelan crude is bought at a discount of $10 to $12 a barrel.

Key Concepts Involved:

• Crude Oil: Unrefined petroleum, a naturally occurring fossil fuel, which is processed to produce usable products like gasoline, diesel, and jet fuel.
• Diversification: A strategy to reduce risk by spreading investments or sourcing from multiple sources, in this case, energy resources.
• Tariffs: Taxes imposed on imported goods, influencing trade and pricing between countries.