India spends €2.5 billion on Russian Oil in October, undeterred by new U.S. sanctions

India, the world’s second-largest buyer of Russian fossil fuels, spent 2.5 billion euros on crude oil from Russia in October, according to a monthly report by the Centre for Research on Energy and Clean Air (CREA). The figure marks no drop from September, underlining India’s continued reliance on discounted Russian oil despite fresh Western sanctions.

Creа’s report shows that crude accounted for 81% of India’s total fossil-fuel imports from Moscow, with coal making up 11% (about €351 million) and oil products contributing the remaining 7% (around €222 million). Compared to September, India’s October crude imports rose by 11%, reflecting strong demand.

While private refiners continue to dominate India’s purchase of Russian oil, state-owned refiners nearly doubled their intake month-on-month. In particular, the Rosneft-owned Vadinar refinery in Gujarat ramped up production to 90% capacity, importing 32% more Russian crude than in September. The refinery, now under EU and UK sanctions, has been relying exclusively on Russian supplies since July, the report added.

The wind-down of exports from Vadinar, especially to sanctioning countries, has hit sharply exports dropped 47% compared to the same month last year, reaching their lowest levels since May 2023.

The October surge in Russia’s oil exports comes amid tougher sanctions. On October 22, the United States imposed sweeping measures on Rosneft and Lukoil, two of Russia’s largest oil producers. These sanctions followed warnings from the West as part of a drive to cut off Kremlin funding for its war in Ukraine.

Trump’s Role and Impact

U.S. President Donald Trump has taken a particularly hard line toward Russian oil. In late October 2025, he imposed sanctions on Rosneft and Lukoil, cutting them off from the U.S. financial system.

Trump has also threatened secondary tariffs of 25–50% on countries that continue buying Russian crude, singling out India in particular. The strategy, according to him, aims to pressure Moscow by choking off revenues but is also part of a broader diplomatic lever on India. Some analysts view these moves as a “negotiation tactic,” given the U.S. reliance on India reducing its Russian oil purchases.

In response to these pressures, India has already begun reducing its December orders for Russian crude. However, New Delhi maintains that it will continue buying only as long as it remains economically viable. Meanwhile, Lukoil has announced plans to sell some of its international assets under a U.S.-granted “wind-down” license.