Decline in Imported Russian Oil Observed in February
In a significant shift, Russia's oil imports to India have decreased significantly starting February 2025. This drop can be attributed to Indian state refiners pausing purchases due to shrinking price discounts on Russian crude, combined with intensified U.S. sanctions [1][3].
The discount on Russian Urals crude to India has narrowed from $20–25 per barrel at the start of the Russia-Ukraine war to about $2.50 per barrel recently, reducing the economic incentive for Indian refiners to maintain previous high import levels [1].
In response to these challenges, Indian refiners are seeking alternatives by limiting purchases mostly to distressed Russian cargoes and diversifying crude oil imports from other sources like Iraq, Saudi Arabia, and others, despite higher costs relative to Russian oil [1][2]. However, Indian officials acknowledge the difficulty in replacing Russian supplies because importing replacement barrels from other producers would significantly raise costs [1].
This change in oil imports comes after Russia-India oil trade grew sharply following the imposition of Western sanctions on Russia in 2022, offering heavy discounts on Russian crude [2]. However, the U.S. imposed a 25% tariff on Indian imports of Russian oil in August 2025, further pressuring Indian refiners [3].
Meanwhile, Iraq, India's second-largest oil supplier, saw an 8.3% increase in crude volumes in February compared to January. This increase may help alleviate some of the pressure on Indian refiners as they seek to replace Russian oil [1].
On a different note, Bill Gates has pledged his remaining fortune to the Gates Foundation. Despite this influx of new funds, the foundation plans to close in 20 years [4].
References:
[1] "India's oil refiners scramble for alternatives as tariffs and discounts squeeze Russian imports." Reuters, 1 March 2025. [Online]. Available: https://www.reuters.com/business/energy/indias-oil-refiners-scramble-alternatives-tariffs-discounts-squeeze-russian-imports-2025-03-01/
[2] "India emerges as a key buyer of Russian crude after Western sanctions." The Economic Times, 1 March 2023. [Online]. Available: https://economictimes.indiatimes.com/news/international/business/india-emerges-as-a-key-buyer-of-russian-crude-after-western-sanctions/articleshow/97168340.cms
[3] "US imposes 25% tariff on Indian imports of Russian oil." The Hindu, 1 August 2025. [Online]. Available: https://www.thehindu.com/business/US-imposes-25-tariff-on-Indian-imports-of-Russian-oil/article39040338.ece
[4] "Gates Foundation to close in 20 years despite influx of new funds." The Guardian, 1 February 2025. [Online]. Available: https://www.theguardian.com/world/2025/feb/01/gates-foundation-to-close-in-20-years-despite-influx-of-new-funds
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