India’s expenditure on Russian crude oil imports in January fell to approximately $2 billion, about half the amount recorded by China, official data shows, reflecting shifting trade dynamics in global energy markets.
Trade figures for January indicate that while Russia remains an important supplier of crude oil to India, the total spending on these purchases declined compared with previous months. By contrast, China’s outlay on Russian crude during the same period was around $4 billion, underscoring the continued strength of its purchases and its larger overall import volume from Russia.
Industry analysts attributed India’s lower spend partly to changes in crude sourcing patterns, with refiners diversifying their procurement to include barrels from the Middle East, West Africa and the Americas alongside Russian grades. Shifts in contracted volumes, discount dynamics and freight economics also influenced buyer preferences during the month.
Despite the relative decline in expenditure, Russia continued to be a key source of medium and heavy crude grades that suit complex refining configurations prevalent at several Indian facilities. These grades often provide yield advantages for diesel and other high-value products, supporting refiners’ margins.
The January data also shows that India’s overall crude import mix has become more diversified as market participants adjust to changing pricing and logistical considerations. Diversification efforts are viewed as tools to manage risks associated with over-dependence on any single supplier and to optimise feedstock costs in a competitive refining environment.
Market observers noted that monthly variations in import spending can result from a combination of contractual timings, freight costs, inventory strategies and broader supply conditions. They cautioned against reading too much into a single month’s figures, while acknowledging that evolving trade flows reflect active commercial decision-making by refiners.
In comparison, China’s higher expenditure on Russian crude in January is consistent with its role as one of the world’s largest crude importers, with strong domestic refining capacity and extensive reliance on Russian barrels due to competitive pricing and long-term commercial relationships.
The relative differences in import spending highlight contrasting strategies among major buyers as they navigate price volatility, freight differentials and geopolitical considerations in global crude markets. India’s approach of maintaining a diversified supplier base is seen by some analysts as strengthening its negotiating position and enhancing feedstock flexibility.
