India Sees Surge in Russian Oil Imports as Refineries Ramp Up Purchases in May

In May 2026, India retained its position as the world’s second-largest buyer of Russian fossil fuels, with imports valued at approximately €5.8 billion (USD 6.7 billion). Crude oil represented about 83% of these imports, amounting to €4.8 billion, significantly influenced by increased procurement from Russian sources. Notably, India’s total crude import volumes saw an 8% month-on-month uptick in May, partly fueled by a remarkable 21% rise in Russian imports, as highlighted by the Centre for Research on Energy and Clean Air (CREA).

The surge in Indian imports can be attributed to a combination of geopolitical shifts and economic factors. Since the commencement of Western sanctions against Russian energy post-invasion of Ukraine, India has strategically expanded its imports of discounted Russian crude, addressing both energy security and cost management objectives. Major refineries, notably in Gujarat, have recorded substantial increases in Russian crude deliveries, suggesting a robust integration of Russian oil into India’s energy supply chain. This trend aligns with a broader global realignment of energy flows, as countries adapt to evolving sanctions and pricing structures.

Looking ahead, traders and investors should anticipate a continued reliance on Russian crude by Indian refiners, particularly in light of ongoing geopolitical dynamics and the attraction of discounted rates. As India diversifies its energy sources while maintaining substantial ties to Russian oil, short-term volatility may emerge from fluctuations in global supply chains and sanctions enforcement. The interplay between the competitive pricing of Russian oil and geopolitical pressures will shape the market landscape, offering potential opportunities for strategic positioning among traders and investors.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)