Russian Oil Imports Surge in India Amidst West Asia Disruptions
India's increasing imports of Russian crude oil are being driven primarily by supply disruptions in West Asia, rather than discounts, according to Axis Bank Economic Research. The report states that Indian imports of Russian crude have averaged around 60 million barrels per month since the US-Iran war began, compared with an average of 46 million barrels a month during FY23-26.
The analysis suggests that securing adequate supplies has become a significant factor for Indian refiners amid disruptions affecting traditional West Asian supply routes. The report notes that Russia's share of India's crude imports had initially risen sharply from zero to around 30% between March 2022 and June 2023, a shift associated with discounted Russian barrels following the disruption in global oil markets.
However, Axis Bank researchers said the additional volumes seen since March 2026 cannot be explained by price dynamics alone. The average discount on Russian crude relative to West Asian crude has remained broadly stable at $3-$5 per barrel since 2023, and periods have been observed where Russia's share of India's crude imports increased even when Russian barrels were trading at premiums of as much as $7 per barrel.