Key Highlights

• Russia has imported over 1 million barrels of Indian gasoline in June-July, turning crude trade into a two-way flow.
• India remains Russia's second-largest crude buyer, importing $56.87 billion in 2024-25.
• Daily crude volumes have ranged between 1.8-2.8 million barrels, with August imports touching 2 million barrels/day.
• After Jaishankar's Moscow visit, Russia assured "uninterrupted" energy supply to India.
• India is also expanding LPG, LNG imports from the US and boosting renewables.

India-Russia energy trade has just entered a fundamentally new phase. In a shift that reflects both the impact of the ongoing Russia-Ukraine conflict and India's expanding role in global energy flows, Russia has begun importing Indian gasoline in significant volumes to offset supply chain disruptions caused by Ukrainian drone attacks on its refineries. According to an article in Eurasia Review by Nikola Mikovic, this shift transforms the traditionally one-way crude oil trade between the two countries into a genuine two-way energy relationship — one that could meaningfully reshape India's trade balance with Russia.

From One-Way Crude to Two-Way Energy Flow

Ukrainian strikes on Russian refineries have pushed Moscow to import Indian gasoline in significant volumes — over a million barrels in June-July alone — according to Mikovic's article. That's a striking reversal of the traditional dynamic where Russia has been the supplier and India the buyer.

This new pattern turns what was once a purely one-way crude flow into a bi-directional energy relationship — a structural change that could help trim India's trade deficit with Russia over time.

The Reshaping of Russian Energy Exports

To understand the significance of this shift, it helps to zoom out to the larger transformation of Russia's energy trade over the past three years.

Before the Kremlin launched its invasion of Ukraine in 2022, Europe was Russia's dominant energy customer. In 2021, Russia accounted for 25.8 per cent of the European Union's oil imports — making it the EU's single largest oil supplier. The sanctions imposed by Western countries after the war began fundamentally transformed that reality, forcing Moscow to look east for new markets.

That's where India entered the picture in a big way.

India Emerges as a Major Russian Energy Partner

Before 2022, the Indian market was on the periphery of Russia's energy policy — with India importing only around 84,000 barrels per day of Russian crude. After Europe cut Russian oil, India rapidly climbed the ranks, becoming Moscow's second-largest crude buyer with recent daily imports averaging between 1.8 million and 2.8 million barrels.

According to the article, statistics show that in 2024 and 2025, India imported $56.87 billion worth of crude oil from Russia — with daily volumes averaging between 1.8 million and 2.1 million barrels.

That's a transformation of scale that would have been unthinkable just five years ago.

The August 2025 Numbers

The scale of recent imports reveals how central Russian crude has become to India's energy security. In August, India bought almost two million barrels per day of crude oil from Russia — more than three times the volume it imported from its second-largest supplier, the United Arab Emirates.

That gap tells its own story. Russia today is not just one of India's energy suppliers. It is, by some margin, the dominant one.

Jaishankar's Moscow Visit and the Assurance of Continuity

The diplomatic dimension of this energy relationship was underscored recently by Indian External Affairs Minister S. Jaishankar's visit to Moscow. Following the visit, on August 25, New Delhi received assurances that Russia will continue to "uninterruptedly supply energy to India."

That kind of formal, public assurance reflects the strategic importance Moscow attaches to its energy trade with India. In an increasingly complex geopolitical environment, India's role as a stable, high-volume buyer is not something Russia is willing to risk.

India's Diversification Play

Even as its energy trade with Russia deepens, India is also actively diversifying its sources — a sign of a mature energy strategy that hedges against single-source dependence.

The article notes that India is buying more LPG and LNG from the US, particularly after the Strait of Hormuz disruption. It is also expanding its renewables portfolio, a long-term structural shift that gives New Delhi greater flexibility in managing energy relationships with both Moscow and Washington.

That diversification is a strategic asset. It gives India significant leverage in an increasingly volatile global energy environment — allowing it to negotiate with multiple partners without becoming vulnerable to disruption in any single source.

Why It Matters

The transformation of India-Russia energy trade into a two-way flow is a significant geopolitical and economic development. For India, it means the potential to reduce its trade deficit with Russia — which has grown substantially with the surge in crude imports. For Russia, it means preserving the operational continuity of its energy sector during a period of supply chain disruption from Ukrainian drone strikes.

More broadly, it signals the growing sophistication of the India-Russia commercial relationship — moving from a simple buyer-seller model to a more interlinked energy partnership where both countries have skin in the game.

The Strategic Logic

India's strategic calculus in maintaining strong energy ties with Russia has always been grounded in pragmatism. Russian crude at discounted rates has provided India with meaningful cost savings during a period of global energy price volatility. It has also given Indian refiners critical throughput volume, strengthening their competitive position in Asian fuel markets.

Now, with Russian buyers turning to Indian gasoline, Indian refineries and refined-product exporters are also gaining a new customer segment. That's a rare and valuable expansion of commercial opportunity.

Industry Impact

For India's refining sector, this shift has meaningful implications. Indian refiners — particularly the large integrated players — could see additional export volumes to Russia in the months ahead. That would strengthen refining margins, improve capacity utilisation and open up new market segments in Central Asian and CIS geographies.

For the LNG and LPG segment, India's expanded relationship with US suppliers signals continued efforts to build resilient supply chains that can absorb disruptions in traditional Middle Eastern routes — particularly around the Strait of Hormuz.

For renewables, India's ongoing expansion in solar and wind capacity is quietly building the long-term buffer against fossil fuel geopolitical volatility.

Geopolitical Dimensions

At the heart of this development sits a broader story — India's ability to navigate one of the most complex geopolitical environments in recent memory. New Delhi has consistently maintained that its energy relationships are guided by national interest, not bloc politics. The current India-Russia energy dynamic reinforces that approach — deep bilateral trade coexisting with strong energy partnerships with the United States, Middle East and other regions.

That balanced posture is what enables India to be simultaneously a major buyer of Russian crude, a major buyer of US LNG, and a growing exporter of refined products to Russia — all without compromising its broader strategic independence.

The Bigger Picture

The transformation of India-Russia energy trade into a two-way flow marks a meaningful new chapter in the countries' bilateral commercial relationship. It reflects the depth of both economic interdependence and strategic trust that has developed over the past three years. It reflects India's growing importance as a global energy hub — both as a buyer and as a producer of refined fuel products. And it reflects Russia's willingness to acknowledge that its energy stability increasingly depends on partnerships beyond its historical customer base.

For India, the immediate benefit is the potential trimming of its trade deficit with Russia. The longer-term benefit is far larger — the emergence of a diversified, resilient, multi-partner energy strategy that positions the country as one of the most strategically important actors in the global energy landscape. And as the Mandakini of crude oil continues to flow from Russian ports to Indian refineries, a new stream — Indian gasoline heading north to Russia — is quietly starting to flow the other way. Two-way trade, two-way trust, two-way interest. That's what strategic partnerships look like in the new global energy order.