US Trade Pressure, Costlier Oil — Why India Slashed Russian Crude Imports by 40% in January

Delhi: India’s imports from Russia fell sharply in January 2026, with trade figures showing a 40% drop compared to the same month last year. The total value of imports fell from $4.81 billion in January 2025 to $2.86 billion in January 2026, according to multiple media reports.

The main reason behind the decline is a significant reduction in Russian crude oil purchases by Indian refiners. Crude oil accounts for roughly 80% of India’s imports from Russia, and shipments in January are estimated at around $2.3 billion or even lower. Other items India imports from Russia include coal, fertilizers, iron products, newsprint, pulses, and precious stones.

This sharp drop in crude oil buying did not happen suddenly. It started after the United States imposed trade pressures and penalties on India in 2025, urging a reduction in Russian oil imports. Measures included higher tariffs on Indian goods, making it costly for Indian businesses to continue importing Russian oil at previous levels.

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Impact on Indian Refiners

Major Indian refiners responded by cutting back. Reliance Industries, India’s largest private refiner, confirmed that it did not expect any Russian crude deliveries in January. Other refiners also reduced purchases to avoid higher costs and potential trade penalties from the US.

Industry analysts say that this trend could continue if trade pressures remain in place, impacting both India-Russia trade volumes and the operations of Indian refineries dependent on Russian crude. Experts also note that India may diversify its import sources to mitigate such geopolitical and economic pressures.

India is actively diversifying its crude oil imports beyond Russia, with major suppliers including Middle Eastern producers such as Iraq, Saudi Arabia and the UAE, African sources like Angola, as well as growing purchases from the United States and Latin American nations to ensure stable energy supplies.