New Delhi, Indian refiners imported a record 2.8 million barrels per day (bpd) of Russian crude in July, accounting for roughly 55.5% of the country's total crude imports of just over 5 million bpd, data compiled by the Centre for Research on Energy and Clean Air (CREA) showed.
Surge in value and volumes
CREA's compilation shows Indian purchases of Russian crude were worth about €5.5 billion in July, up from €4.5 billion in June. Crude constituted about 87% of India’s total Russian fossil-fuel imports during the month, highlighting the dominance of oil in bilateral energy trade.
The increase in imports came even as the Group of Seven and the European Union maintain a $44.10-a-barrel price cap on Russian seaborne crude; Russia’s Urals crude averaged $60.22 a barrel in July, CREA reported.
Smaller terminals drive the rise
The July record was not led by the largest receiving hubs. Instead, a sharp rise in shipments through smaller terminals pushed overall volumes higher:
- HMEL Mundra receipts rose 58% month-on-month.
- Indian Oil’s Vadinar terminal volumes climbed 35%.
- Imports through Mumbai increased by 37%.
- Paradip volumes fell by 22%, while Jamnagar remained largely unchanged.
| Metric | July 2026 | June 2026 |
|---|---|---|
| Russian crude imports (bpd) | 2.8 million | Not specified |
| Value of Russian crude imports | €5.5 billion | €4.5 billion |
| Urals average price | $60.22/barrel | — |
What this means for India
The numbers underline India’s growing reliance on Russian supplies since the Ukraine war began in 2022: Russia’s share of India’s crude imports jumped from about 2.5% in 2021 to more than half of total crude purchases in July 2026. The economics are straightforward — discounted Russian barrels have been attractive to refiners after many Western buyers reduced purchases.
At the same time, India faces a complex policy calculus. The apparent affordability and steady availability of Russian crude have helped refiners and supported product exports, but they also expose the country to potential trade friction. The July data arrive against the backdrop of a looming US tariff threat on Russian-origin petroleum products, which could affect downstream exports and international shipping arrangements.
For consumers and industries in India, increased Russian oil flows can help moderate domestic fuel costs by keeping refinery utilisation and product supplies robust. However, any external measures — such as tariffs or tighter shipping restrictions — could raise costs for refiners, disrupt timelines and transmit to domestic fuel and petrochemical prices.
Refining hub role and export flows
India continues to act as an important refining destination for Russian crude, processing it into refined products for both domestic use and exports. While sanctions and policy measures have increasingly constrained certain trade channels for Russian-origin fuels, refiners processing Russian barrels have continued to supply markets abroad where permitted.
Policymakers must balance energy security, supply economics and diplomatic considerations. The July figures underscore the immediate economic advantages of discounted Russian supplies, but they also highlight the strategic dependence that may complicate India’s international economic relations should punitive measures intensify.
Bottom line: The record July imports show Indian refiners are leaning heavily on discounted Russian crude to meet demand and bolster exports. That strengthens near-term supply and price stability domestically, but raises exposure to potential external restrictions — a risk that will shape industry and policy decisions in the months ahead.
