Kremlin Says Decline in India’s Imports of Russian Oil Likely Temporary

New Delhi – The Kremlin has suggested that the recent dip in India’s imports of Russian oil may last only for a short period, emphasising that Moscow plans to strengthen supply mechanisms and deploy more sophisticated technologies to navigate the impact of ongoing Western sanctions.

The remarks come as both nations prepare for high-level discussions during President Vladimir Putin’s upcoming visit to New Delhi, where energy cooperation is expected to feature prominently on the agenda.

India, one of the world’s largest importers and consumers of crude oil, has reduced purchases of Russian barrels in recent months as sanctions have tightened around Russian energy exports.

Despite this decline, officials in Moscow remain confident that the two countries will reinforce their long-standing energy partnership and mitigate the challenges posed by restrictions imposed by Western governments.

Russia is currently India’s largest supplier of oil, filling a crucial role in a market where diversification is essential for meeting rising domestic energy demand.

The recent drop in supply is linked to sanctions affecting major Russian producers and transport networks, pushing some Indian refiners to scale back procurement while reassessing compliance risks and payment constraints.

Moscow has reiterated that it possesses significant technical capability and experience operating under sanction regimes, and it intends to upgrade these systems further to ensure uninterrupted trade.

Officials have underscored that Russia is working to create a stable environment for buyers seeking its crude, which includes developing secure payment channels and refining logistical frameworks that are less vulnerable to third-country pressures.

The broader geopolitical context has added urgency to discussions between the two countries, as Russia seeks to preserve its market share in Asia while India aims to balance economic interests with global diplomatic considerations.

Payment arrangements, in particular, are expected to be a focal point of upcoming talks, with both nations exploring mechanisms that can remain stable amid external restrictions.

Several Indian refiners—including Mangalore Refinery and Petrochemicals, Hindustan Petroleum, and HPCL-Mittal Energy—have halted the purchase of Russian crude in recent weeks due to sanctions-related complications.

State-run Indian Oil has placed new orders specifically from non-sanctioned entities, while Bharat Petroleum is reportedly in advanced negotiations to secure future shipments through channels deemed compliant with international requirements.

One key player, Nayara Energy, which is partly owned by Russian interests, continues to rely almost exclusively on Russian crude supplies after other global providers reduced their engagement following European and British restrictions.

Moscow is keen for India to maintain strong support for Nayara, viewing the refiner as an important asset for sustaining Russia’s presence in the Indian energy market.

Reliance Industries, which was previously one of the largest Indian buyers of Russian oil, has stated that it is processing cargoes loaded before late October under pre-existing commitments.

Any cargoes arriving after late November will be directed toward production intended primarily for the domestic market, reflecting a shift in strategy as global pressure on Russian flows intensifies.

The evolving trade dynamic has prompted discussions over long-term security of energy supply between Moscow and New Delhi.

While short-term disruptions may continue due to regulatory barriers, both countries appear aligned in their intention to stabilise energy cooperation and adapt their systems in response to external challenges.

As preparations for the upcoming meeting progress, analysts expect both sides to highlight the strategic importance of the India–Russia relationship in the global energy landscape.

The final outcomes may set the direction for future oil exchanges, shaping how the two nations navigate sanctions, payments, and geopolitical headwinds in the months ahead.