India's Oil Imports Surge: Russian Crude Dominates at Record 50 Percent

Russian crude oil reached a record share of India's total imports in July, exceeding 50%. According to Reuters data, Russian oil accounted for 50.83% of India's import volume during this period, totaling 2.47 million barrels per day.

This figure represents a 62.4% increase compared to July of the previous year. While there was a slight decline of 4.8% from the June peak of 2.6 million barrels per day, the data underscores India's role as a primary destination for Russian energy exports and its continued acquisition of oil despite G7 price cap restrictions.

Shift in Supplier Dynamics

Russian grades, specifically Urals and Sokol, are displacing traditional suppliers from the Persian Gulf. Imports from Saudi Arabia have fallen to multi-year lows because Russian crude remains cheaper for Indian refineries even after accounting for logistics costs.

The profile of buyers within India has also evolved. While private firms like Reliance Industries and Nayara Energy led purchases between 2022 and 2023, state-owned corporations—including Indian Oil Corp (IOC) and Bharat Petroleum—have fully entered the market as of summer 2026.

Payment Mechanisms and Currency Transition

Trade relations previously faced a "rupee deadlock," where significant funds accumulated in Indian currency on Russian accounts without efficient conversion or exit options. By 2026, this mechanism was normalized.

Settlements have largely shifted to Chinese yuan, UAE dirhams, and Russian rubles. Additionally, India has permitted the use of rupees for direct domestic investments, allowing Russian holdings to fund infrastructure, shipbuilding, and joint defense projects.

The table illustrates the systemic transition of India's energy procurement from traditional Middle Eastern sources to a diversified payment structure centered on Russian crude.

Broader Asian Market Trends

Concurrent with the trend in India, exports to China showed significant growth. In the first half of 2026, imports grew by 92% year-on-year, reaching historical highs in both volume and revenue.

The development of alternative payment infrastructures and the transition to national currencies for oil settlements have limited the effectiveness of G7 sanctions. India and China have effectively integrated Russian resources into their energy security frameworks, ensuring a steady flow of currency for Russia to finance its military-industrial complex.

Source: This article was adapted from an original Russian-language publication by Pravda.Ru.