India reduced its purchases of Russian hydrocarbons in December as softer prices, easing demand and logistical constraints curbed import values, according to data from the Centre for Research on Energy and Clean Air (CREA).
India’s total imports of Russian crude oil, refined fuels, coal and gas were valued at €2.3 billion in December, down from €3.3 billion in November, marking a sharp month-on-month decline, the think tank said.
The fall indicates a pause in the aggressive buying that had made India one of Russia’s largest energy customers over the past two years, after discounted Russian barrels replaced costlier Middle Eastern and African supplies following western sanctions.
December’s data suggests purchases are becoming more sensitive to market conditions and operational considerations. Lower crude prices reduced the overall value of imports even where physical volumes may have remained steady. Some refiners also moderated buying after building inventories earlier, while seasonal maintenance and weaker fuel demand weighed on fresh procurement.
Logistical and compliance challenges linked to sanctions on Russian energy exports also played a role. While India is not part of western sanctions, tighter scrutiny of payments, shipping insurance and freight arrangements has increased transaction costs, making some buyers more cautious, particularly in spot markets.
The decline also reflects a gradual diversification of sourcing. As discounts on Russian crude narrowed, Middle Eastern and US supplies became more competitive for certain grades, prompting refiners to rebalance crude baskets.
Despite the December drop, Russia remains among India’s largest single energy suppliers. Analysts note that discounted Russian oil has helped contain India’s import bill and inflation, even as refiners increasingly factor in geopolitical risks alongside price.
