India’s energy landscape is shifting as the country significantly increased its petroleum imports from the United States while scaling back on Russian crude. Government data reveals a massive 65.6% annualized jump in US crude imports, valued at $8.2 billion, during the April–December 2025 period.
In sharp contrast, imports from Russia—previously India’s top supplier—dropped by over 17%, falling from $40 billion in 2024 to $33.1 billion in 2025.
December 2025: A Turning Point
December 2025 marked a significant contraction in the Indo-Russian energy trade. Russia was the only supplier among India’s top five to see a decline during this month.
| Supplier | Dec 2025 Import Value | Year-on-Year Change |
| Saudi Arabia | $1.75 Billion | +61% |
| United States | $569.30 Million | +31% |
| UAE | $1.65 Billion | +6% |
| Iraq | $2.37 Billion | +4.56% |
| Russia | $2.71 Billion | -15.15% |
Impact of US Punitive Tariffs
Industry experts attribute this steep decline to geopolitical pressures. On August 27, 2025, the United States imposed a 25% punitive tariff on Indian goods to discourage New Delhi from purchasing sanctioned Russian petroleum.
While imports remained steady through November due to long-term contracts, December saw a dramatic 35% month-on-month drop (from $3.72 billion in November to $2.71 billion). Private refiners, who favored Russian crude for its heavy discounts, appear to be recalibrating their sourcing to avoid secondary trade complications.
Government Stance on Energy Security
Despite the shift, the Ministry of External Affairs (MEA) maintains that India’s priority remains the energy security of its 1.4 billion citizens.
“Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy,” an MEA spokesperson stated on February 5.
Overall, India’s total crude imports from 39 countries grew by 9.1% in December 2025, reaching $11.29 billion, as the nation continues to balance its massive energy requirements against a volatile global political climate.