India Boosts Russian Oil Imports Despite US Sanctions Pressure

India boosts Russian oil imports amid U.S. sanctions, leveraging BRICS local currency trade to reduce dollar reliance and cut costs

  • India increased its Russian oil imports in November 2025 despite U.S. sanctions, purchasing 1.7 million barrels, a 3.4% rise from October.
  • India received 1.2 million barrels of Russian oil in December, with several state-run refiners actively buying or negotiating to buy Russian crude.
  • BRICS countries, including India and Russia, are trading oil using local currencies like the rupee, ruble, and Chinese yuan, reducing reliance on the U.S. dollar.
  • The U.S. contends sanctions pressure Russia economically by forcing oil discounts and fewer buyers, but BRICS members benefit from discounted oil and reduced foreign exchange costs.

In November 2025, India ordered 1.7 million barrels of oil from Russia, a BRICS member, marking a 3.4% increase compared to the previous month. Despite ongoing U.S. sanctions aimed at curbing purchases of Russian oil, India continued to import, with 1.2 million barrels shipped in December, according to reports.

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Several Indian state-run refiners, such as Indian Oil Corp and Bharat Petroleum, are actively buying crude oil from Russia. Hindustan Petroleum has engaged in negotiations and may resume its Russian oil imports in January 2026. These transactions indicate that both India and Russia maintain their energy trade despite U.S. diplomatic pressure.

The BRICS alliance supports these oil deals by transacting in local currencies including the rupee and ruble. China also participates in oil trades with Russia using the Chinese yuan. This shift moves the partners away from the U.S. dollar, which has been impacted by sanctions imposed by Washington.

The U.S. government maintains that sanctions are effective. A U.S. official stated, “Thanks to President Trump’s leadership, Russia has been forced to accept deep discounts and fewer buyers for its oil. These pressures are limiting the Kremlin’s revenues and increasing the financial strain of sustaining its war.” However, the BRICS countries see these oil purchases as economically advantageous.

India had previously saved approximately $7 billion in foreign exchange by buying discounted Russian oil amid sanctions. This approach has bolstered the BRICS agenda of reducing dependence on the U.S. dollar while securing energy resources at lower costs. Despite efforts by the previous Trump administration and ongoing U.S. sanctions, halting these transactions has so far been unsuccessful.

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