India continued to be second-largest purchaser of Russian fossil fuels in January 2026, importing energy products worth €2.2 billion ($2.59 billion), according to data released by Centre for Research on Energy and Clean Air (CREA), a Helsinki-based research organisation.
Although this marked a slight decline from €2.3 billion in December 2025, the figures highlight India’s continued dependence on discounted Russian energy supplies amid global geopolitical tensions and Western sanctions on Moscow.
China retained its position as Russia’s largest fossil fuel buyer during the month.
What Did India Import?
India’s January imports from Russia included:
- Crude oil
- Petroleum products
- Coal
- Liquefied Natural Gas (LNG)
Import Breakdown
- Crude oil: €2 billion (78% of total imports)
- Coal: €442 million
- Oil products: €30 million
In comparison, India purchased €1.8 billion worth of Russian crude in December 2025, showing a marginal increase in crude value month-on-month.
Refinery Developments: Jamnagar Case
In January 2026, the Jamnagar refinery (owned by Reliance Industries) did not receive any seaborne Russian crude.
Why?
The halt was linked to sanctions imposed by the Office of Foreign Assets Control (OFAC) of the United States on Russian oil major Rosneft, which was the refinery’s primary supplier.
However:
- Purchases resumed in February.
- Three Russian shipments were reported as destined for Jamnagar.
This episode highlights how global sanctions continue to shape trade flows.
Oil Prices and Sanctions Impact
- The average price of Russia’s Urals crude rose by 4% in January to $54.2 per barrel.
- This price remained above the new EU–UK price cap of $44.1 per barrel, which came into effect on February 1, 2026.
Additionally:
- The European Union banned imports of oil products made from Russian crude starting January 21, 2026.
- Combined with OFAC sanctions on Rosneft and Lukoil, Indian refineries exporting to the EU stopped using Russian feedstock.
India’s Import Trends
- January 2026: India imported 1.2 million barrels per day (bpd) of Russian oil.
- Saudi Arabia supplied 774,000 bpd in the same month.
However:
- Russian imports are expected to decline to 800,000 bpd in March 2026, the lowest since May 2022.
- Saudi Arabia is regaining market share in India’s oil basket.
China’s Growing Purchases
While India slightly reduced purchases, China expanded imports:
- China’s imports of Russian crude rose 18% month-on-month to €4 billion ($4.71 billion).
- Over the past two months, China increased imports by 29%.
- Urals crude imports doubled in January — reaching their highest ever volumes.
- Russian crude now accounts for 16% of China’s total oil imports.
China’s seaborne imports of ESPO crude remained stable, while purchases of Urals — earlier less preferred — surged significantly.
Why India Continues Buying Russian Oil
Since 2022, following sanctions related to the Ukraine conflict, Russia has offered oil at substantial discounts.
For India:
- Competitive pricing is the primary driver.
- Energy security remains a top priority.
- Refiners operate based on commercial considerations.
- Alternative payment mechanisms and logistics arrangements have ensured continuity.
India’s strategy reflects a balance between:
- National interest
- Energy affordability
- Compliance with international frameworks
Global Context
Global oil markets remain volatile due to:
- OPEC+ production policies
- Supply chain disruptions
- Freight rate fluctuations
- Maritime shipping constraints
As long as Russian crude remains competitively priced and logistically viable, analysts expect India to continue significant imports.
Bigger Picture
- Russia has become a key component of India’s crude import basket since 2022.
- India’s purchasing decisions are guided by economics rather than geopolitics.
- Diversification remains ongoing, with Middle Eastern suppliers regaining some share.
- Sanctions and price caps continue to influence trade flows.