Russian oil imports at new low; West Asia share up

3 MARCH 2026

India continued its strategy of reducing Russian oil imports and sourcing more from West Asian countries and the U.S. in January 2026 as well, the latest official data shows, with Russia’s share in India’s oil imports falling to less than 20% for the first time since May 2022.

Decreased oil import from Russia

An analysis of the latest preliminary data from the Ministry of Commerce and Industry shows that India imported $1.98 billion worth of crude oil from Russia in January 2026, the month before India and the U.S. issued a joint statement about an interim trade agreement between the two countries. This was also the lowest in 44 months.
For context, Russia’s share was 27.5% two months earlier, and 33% in May 2025.
While India has maintained that it decides on its energy sourcing based on independent strategic and energy security considerations, the U.S. has repeatedly linked the lowering of tariffs on Indian imports and the potential trade deal with India’s cutting down of oil imports from Russia.

Increased oil import from West Asia

Even as it lowered oil supplies from Russia, India has either retained supply levels from the West Asian countries or increased them.
About 16.6% of India’s oil imports in January 2026 came from Iraq, about the same level as a year earlier. The UAE accounted for 10.4% of India’s oil imports in January 2026. Saudi Arabia saw its share of Indian oil imports jump to 17.5% in January 2026, the highest it has been since April 2023. Kuwait’s share grew to 6.1%, the highest since February 2023.
However, with Iran having closed the crucial Strait of Hormuz following the conflict in West Asia, supplies of oil from all of these countries are at risk.

Consequences

The trade deal with the U.S. — allegedly the main reason for India reducing cheap Russian oil imports — is in limbo following the U.S. Supreme Court’s February 20 decision striking down that country’s reciprocal tariffs.
The decision to shift away from discounted Russian oil could prove costly for India as the current conflict in West Asia has already pushed up global oil prices by more than 8% to hover around the $80 a barrel mark as of mid-day March 2.
“Every $1 increase in crude raises India’s annual import bill by approximately $2 billion,” JM Financial Services said in a note.
Further, increasing supplies from distant countries like the U.S. — which saw its share in India’s oil imports rise to 6.8% in January 2026 from 5% a year earlier — means Indian refineries would have to pay higher freight charges.