India’s Russian Oil Imports Hit €144 Billion: 2026 CREA Report

India Spends €144 Billion on Russian Oil: Second Only to China

According to a new report by the Centre for Research on Energy and Clean Air (CREA) released on January 6, 2026, India has imported approximately €144 billion ($157 billion) worth of crude oil from Russia since the start of the Ukraine war in February 2022.

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Despite mounting Western sanctions, Russia’s global fossil fuel earnings have hit a staggering €1 trillion ($1.09 trillion) milestone as of January 2026, with India and China serving as the primary pillars of this trade.

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1. Global Leaderboard of Russian Energy Buyers

Since February 24, 2022, three major entities have accounted for the bulk of Russia’s fossil fuel revenue.

Key Insight: While the EU has drastically cut oil imports, it remains a major consumer of Russian gas, which remains largely unsanctioned.³ Conversely, India’s purchases are almost exclusively crude oil and coal.

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2. The Recent Slump: US Sanctions Impact (2025–26)

While India’s share of Russian oil peaked at nearly 40% of its total crude basket in 2023, it has seen a sharp decline following fresh US sanctions on November 22, 2025.

• Daily Purchases: Dropped to €72.92 million in early January 2026, down from a peak of €189.07 million in July 2023.

• Corporate Shift: Major private refiners like Reliance Industries and state-run HPCL have paused imports from sanctioned entities like Rosneft and Lukoil to avoid secondary sanctions and 100% tariff threats from the US.

• The “Shadow Fleet”: Despite the slowdown, trade continues through a “shadow fleet” of aging tankers and non-sanctioned intermediaries like Tatneft and Alghaf Marine.

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3. The “Refining Loophole”

CREA notes that while the EU and G7 have banned direct Russian oil, they continue to fund the Kremlin indirectly.

• The Process: India imports discounted Russian crude, refines it into diesel or jet fuel at facilities like Reliance’s Jamnagar, and exports the finished products back to the EU, US, and Australia.

• Policy Change: As of January 2026, new EU compliance guidelines aim to tighten this “loophole,” though enforcement remains complex.

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