The impact of US trade policy on India’s crude oil procurement became strikingly evident in 2025, with Russian imports experiencing a significant decline while American crude purchases surged. Data indicates that US crude imports to India increased by 65.6% to $8.2 billion during April-December 2025, while Russian crude imports contracted by more than 17%, falling from $40 billion to $33.1 billion in the same period.
December 2025 import figures underscore the magnitude of this shift. Russia, previously a major supplier, saw its crude shipments to India decline by 15.15% to $2.71 billion, down from $3.2 billion in December 2024. This made Russia the sole supplier among India’s top five to experience contracting imports, reflecting the changing calculus of India’s energy procurement decisions.
Other major suppliers to the Indian market demonstrated strong positive momentum. Saudi Arabia achieved exceptional growth with a 61% year-on-year surge, delivering crude valued at $1.75 billion in December 2025. The United States recorded a 31% increase in crude exports to India, reaching $569.30 million. Iraq maintained steady expansion with a 4.56% rise to $2.37 billion, while UAE shipments grew 6% to $1.65 billion.
The steep decline in Russian crude imports appears closely connected to the US implementation of a 25% punitive tariff on Indian goods on August 27, 2025. This measure was explicitly designed to deter India from purchasing sanctioned Russian petroleum. The policy’s effectiveness became increasingly apparent through the final months of 2025, with Russian crude imports plummeting from $3.72 billion in November to $2.71 billion in December—a dramatic 35% month-on-month decline.
India’s aggregate crude oil imports from all 39 source countries totaled $11.29 billion in December 2025, up 9.1% from $10.34 billion in December 2024. For the April-December 2025 period, cumulative imports amounted to $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. Officials emphasize that energy security for 1.4 billion Indians remains the paramount priority, with diversification strategies adapting to evolving international circumstances.