India Seeks New Oil Suppliers Amid Threat of U.S. Sanctions on Russian Imports

In August 2025, India, which relies on Russia for over a third of its crude oil imports, is preparing to seek alternative suppliers if it is forced to cut Russian imports due to potential U.S. penalties. The country has been purchasing discounted Russian oil since 2022, when Western sanctions on Moscow led to a supply shortage and price surge. This has helped India manage its energy costs, as it imports more than 85% of its oil needs.

However, with the U.S. threatening sanctions on countries that continue to buy Russian exports, India is now looking to the Middle East, Africa, and other regions to diversify its sources. The world's third-largest oil importer and consumer received about 1.75 million barrels per day of Russian oil in the first half of 2025, up 1% from the previous year. But this reliance on Russia may need to be reduced if the U.S. follows through on its warnings.

India has resisted pressure from the U.S. to cut Russian oil imports, citing its longstanding ties with Moscow and its own economic needs. But the country's state refiners have already paused some purchases of Russian crude in recent months. India is now working to further diversify its supply sources, with the oil minister stating that the country now buys from around 40 different countries, including new suppliers like Guyana, Brazil, and Canada.