India-Russia energy trade turns two-way as Moscow imports Indian gasoline
Synopsis
What began as India buying discounted Russian crude has quietly become a two-way energy corridor — with Moscow now importing Indian gasoline to offset refinery damage from Ukrainian drone strikes. India, buying nearly 2 million barrels of Russian crude daily, has gone from a peripheral market to Russia's second-largest global oil buyer, and is now leveraging that position to chip away at a widening trade deficit.
Key Takeaways
Russia imported over one million barrels of Indian gasoline in June–July 2025 after Ukrainian drone strikes disrupted its refinery output.
India now buys between 1.8 million and 2.8 million barrels per day of Russian crude, up from just 84,000 barrels per day before 2022.
India imported $56.87 billion worth of Russian crude oil across 2024 and 2025 , making it Russia's second-largest oil buyer globally .
In August 2025 , India's Russian crude purchases were more than three times those from its next-largest supplier, the UAE .
Following EAM Jaishankar's visit to Moscow on 25 August , Russia pledged 'uninterrupted' energy supply to India.
India is also expanding US LPG/LNG imports and renewables, giving New Delhi strategic flexibility with both Moscow and Washington.
The energy trade between India and Russia has shifted from a one-way crude flow into a reciprocal arrangement, with Moscow importing over one million barrels of Indian gasoline in June–July 2025 after Ukrainian drone strikes on Russian oil refineries triggered significant supply chain disruptions. The development, analysed in a piece by Nikola Mikovic in Eurasia Review, signals a structural deepening of the bilateral energy relationship that could help narrow India's trade deficit with Russia.
How the Trade Relationship Shifted
Prior to Russia's invasion of Ukraine in 2022, Europe dominated Russian energy exports. In 2021, Russia supplied 25.8% of the European Union's oil imports, making it the bloc's single largest oil provider. Western sanctions imposed after the war fundamentally reordered those flows, pushing Moscow to pivot east — and India moved from the margins of Russia's energy strategy to its centre.
Before 2022, India imported roughly 84,000 barrels per day of Russian crude. That figure has since surged to between 1.8 million and 2.8 million barrels per day, making India Russia's second-largest crude buyer globally. In August 2025, India reportedly purchased close to two million barrels per day from Russia — more than three times the volume sourced from its second-largest supplier, the United Arab Emirates.
Scale of the Energy Dependency
According to Mikovic's analysis, India imported $56.87 billion worth of crude oil from Russia across 2024 and 2025, with daily volumes averaging between 1.8 million and 2.1 million barrels. India is now the world's second-largest buyer of Russian oil overall, a position that would have been unimaginable before the Ukraine conflict reshaped global energy markets.
Notably, the relationship is no longer purely extractive for Russia. Ukrainian strikes on Russian refining infrastructure have created domestic fuel shortfalls, prompting Moscow to turn to Indian refiners — who had themselves scaled up processing of discounted Russian crude — to plug the gap with refined product exports.
Diplomatic Assurances and Strategic Signalling
On 25 August, following External Affairs Minister S. Jaishankar's visit to Moscow, New Delhi received formal assurances that Russia would continue to 'uninterruptedly supply energy to India.' The language reflects the premium Moscow now places on the Indian market as European buyers remain locked out by sanctions.
This comes amid a broader Indian energy diversification effort. According to the analysis, India has also been increasing purchases of LPG and LNG from the United States following disruptions linked to the Strait of Hormuz, while simultaneously expanding its renewables capacity. Mikovic argues this multi-vector approach gives New Delhi greater strategic flexibility in managing its relationships with both Moscow and Washington.
What the Two-Way Trade Means for India
The emergence of a two-way energy corridor — Indian gasoline flowing west as Russian crude flows east — offers India a tangible lever to reduce its bilateral trade imbalance with Russia, which has widened sharply since 2022. Whether this evolves into a durable industrial partnership or remains a wartime convenience will depend on how long the Ukraine conflict, and the sanctions regime around it, persists. Analysts will be watching the next round of India-Russia bilateral talks for any formalisation of the refined-product export arrangement.
Point of View
New Delhi was a passive price-taker on Russian crude; now it is a refinery partner filling Moscow's domestic fuel gaps. That shift carries leverage India has not yet fully articulated publicly. The risk is over-exposure: with nearly two million barrels a day sourced from a single sanctioned supplier, any abrupt geopolitical rupture — a secondary-sanctions escalation by Washington, for instance — would hit Indian refining margins hard. The diversification into US LNG and renewables is real but nascent, and unlikely to offset a sudden Russian supply shock at current volumes.
NationPress
30 Aug 2026
Frequently Asked Questions
Why is Russia now importing gasoline from India?
Ukrainian drone strikes on Russian oil refineries have disrupted domestic fuel production, creating shortfalls that Moscow is plugging by importing refined products from India. Russia imported over one million barrels of Indian gasoline in June–July 2025, according to analysis published in Eurasia Review.
How much Russian crude oil does India currently import?
India is currently importing between 1.8 million and 2.8 million barrels of Russian crude per day, making it Russia's second-largest oil buyer globally. This is a dramatic increase from roughly 84,000 barrels per day before Russia's invasion of Ukraine in 2022.
What assurances did India receive from Russia on energy supply?
Following External Affairs Minister S. Jaishankar's visit to Moscow, Russia formally assured New Delhi on 25 August that it would continue to 'uninterruptedly supply energy to India,' underscoring the strategic importance Moscow attaches to the bilateral energy relationship.
How does the two-way energy trade benefit India?
By exporting refined gasoline to Russia while importing crude, India can generate export revenue that helps narrow its bilateral trade deficit with Moscow, which has widened significantly since 2022 due to the surge in crude imports.
Is India diversifying away from Russian energy?
India is simultaneously expanding purchases of LPG and LNG from the United States, partly in response to Strait of Hormuz disruptions, and is scaling up renewables capacity. Analysts argue this multi-source strategy gives New Delhi greater flexibility in managing its relationships with both Russia and Western partners.
