India’s Changing Oil Procurement Policy

February 4, 2026

India meets 85 to 90 percent of its crude oil needs through imports. India imports most of its oil from Russia, the US, and Middle Eastern countries. Brazil is also a major oil supplier to India. During the economic crisis following the COVID-19 pandemic, Russia provided significant support to India by supplying oil. Firstly, Russia offered oil at discounted prices. Secondly, it accepted payment in Indian rupees. India enthusiastically purchased crude oil from Russia. Indian petroleum companies refined this crude oil and sold it to needy countries around the world, generating profits.

US President Donald Trump criticized India’s purchase of oil from Russia and imposed a 25 percent tariff on Indian goods, along with a 25 percent penalty. While India has reduced its oil purchases from Russia to facilitate trade negotiations with the US and rationalize its tariff rates, it has not completely stopped buying oil from Russia. India is still purchasing a significant amount of crude oil from Russia. Instead of buying from US-sanctioned oil companies, India is now buying from other smaller Russian companies.

In light of the US threats, India has now diversified its oil procurement significantly. Accurate data from the analysis firm Kpler shows that in the first three weeks of January, imports of Russian crude oil fell to approximately 1.1 million barrels per day. This was down from 1.21 million barrels the previous month, and significantly lower than the 2 million barrels per day imported in 2025. The US has expressed satisfaction that India has almost halved its oil purchases from Russia.

India is a sovereign nation. We cannot blindly follow US orders. Another country has also emerged on the map that is supplying us with crude oil in quantities comparable to Russia: Iraq. We have started buying as much oil from Iraq as we do from Russia. In addition, we have started purchasing 924,000 barrels of oil per day from Saudi Arabia, compared to 710,000 barrels per day previously. Prior to this, in April 2025, we were purchasing approximately half that amount, or 529,000 barrels. Russia had become our largest oil supplier.

Now, Western countries have stopped buying oil from Russia, but India has not completely stopped purchasing oil from Russia despite American threats and pressure, nor does India intend to do so. India has also signed a contract to purchase 12 million barrels of crude oil from Brazil. $780 million has been allocated for this. It is clear that India is diversifying its oil purchases, disregarding American threats.