Russia bypasses sanctions as India's oil imports face US tariff threats | Quick Digest
Russia is actively working to circumvent new US sanctions to maintain its crucial oil trade with India, despite a recent dip in Indian imports. This comes amidst US threats of hefty tariffs on India for continuing to purchase discounted Russian crude.
Russia develops new strategies to circumvent US oil sanctions.
India's Russian oil imports dipped in December due to sanctions.
US threatens India with 500% tariffs over Russian oil purchases.
India asserts sovereign right to purchase oil based on economic factors.
Reliance Industries notably reduced Russian crude imports in December.
Experts anticipate Russia's supply chain reorganisation for continued trade.
Russia is actively devising strategies to bypass the latest US sanctions aimed at disrupting its oil trade, particularly with India, to ensure a continued flow of discounted crude. This development follows a significant diplomatic and economic standoff, where the US, under former President Donald Trump, has threatened India with punitive 500% tariffs on imports if it continues to procure Russian oil. These threats come after an earlier imposition of 25% tariffs in August 2025, which later increased to 50%.
India, historically the world's second-largest purchaser of Russian crude since the Ukraine war began, has staunchly defended its stance, asserting its sovereign right to make energy procurement decisions based on national interest and economic viability. The country's energy policies, which rely heavily on imports, are not to be dictated by third parties.
The most recent US sanctions, implemented in late November 2025, specifically targeted companies and refineries dealing with major Russian oil exporters like Rosneft and Lukoil. This had an immediate impact, causing India's Russian crude imports to drop from an average of 1.7 million barrels per day (bpd) to approximately 1.2 million bpd in December 2025, a decrease of about one-third. This reduction led to India falling to the third position among buyers of Russian fossil fuels, with Turkey taking the second spot and China remaining the top importer. Notably, private refiners like Reliance Industries significantly reduced their Russian crude intake in December, citing adherence to sanctions.
Despite this initial dip, industry analysts remain skeptical that these sanctions will permanently halt India's reliance on inexpensive Russian oil. Experts predict Russia will successfully reorganize its supply chain, potentially by utilizing non-sanctioned entities, allowing Indian public sector imports to revert to previous levels within a few months. Russian President Vladimir Putin reiterated during a December visit to India that oil shipments would remain "uninterrupted". The significant discount on Russian crude, currently $9-10 per barrel cheaper than Middle Eastern oil, continues to present a compelling economic incentive for India, which imports 90% of its oil needs.
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