India’s merchandise imports from Russia in January fell sharply by 40.48%, dropping to $2.86 billion from $4.81 billion in January 2025, according to the latest data released Monday. The decline is largely due to Indian refiners significantly reducing their purchases of Russian crude oil. Crude typically accounts for around 80% of India’s imports from Russia, with estimated crude imports in January around $2.3 billion or possibly less. Besides crude, India imports coal, certain petroleum products, fertilizers, iron, newsprint, pulses, pearls, and precious and semi-precious stones from Russia.

The fall in Russian crude imports began after peaking at $4.73 billion in April 2025, coinciding with the US announcing its Liberation Day tariffs and pressuring India to limit purchases. By September 2025, imports dropped nearly 30% to $3.32 billion after Washington imposed an additional 25% punitive tariff on Indian goods for buying Russian crude.

Indian refiners, including Reliance Industries Ltd (RIL), confirmed they had halted Russian crude deliveries in January. Analysts expect imports from Russia to decline further in the coming months as Indian refiners turn to cheaper Venezuelan crude, encouraged by the US, which also withdrew the punitive 25% tariff on Indian goods on February 6. The US has suggested that India purchase energy products from Venezuela and the US.

India was a major buyer of Venezuelan crude, importing $14.1 billion in 2012-13, but purchases fell to zero by 2021-22 due to geopolitical factors. Conversely, Russian crude imports, which were negligible in 2011-12, surged from 2022-23 onwards—reaching $31 billion, $46.49 billion, and over $50.28 billion in subsequent years through 2024-25.

Disclaimer: This image is taken from Hindustan Times.