January merchandise imports from Russia have declined significantly in India, falling by 40.48 per cent to $2.86 billion from $4.81 billion over the same period last year, according to the latest available figures announced on Monday and as reported by Hindustan Times.
Sharp drop in January imports from Russia
The decline is mainly due to Indian refiners cutting back on Russian oil imports. Crude oil constitutes about 80 per cent of India's total imports from Russia.
The actual imports of Russian crude oil for January may have been around $2.3 billion, maybe slightly lower, according to sources who are aware of the developments but spoke on the condition of anonymity, stated Hindustan Times.
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Though the government has announced the import and export figures for January 2026 on Monday, they have not been categorised according to product and country of origin.
Apart from crude oil, India imports coal, coke, petroleum products, fertiliser, iron, newsprint, project goods, pulses and various kinds of precious and semi-precious stones, among others, from Russia.
Oil purchases cut as refiners shift strategy
The decline in India's Russian oil imports started from a peak of $4.73 billion in April 2025. During that month, the US government also declared its Liberation Day tariffs and stepped up pressure on India to reduce Russian crude imports. Then, from August 27, the US imposed an additional 25 per cent punitive tariff on Indian goods, effectively a penalty for purchasing Russian crude. Consequently, India's Russian oil imports fell to $3.32 billion in September, a drop of around 30 per cent from April.
The drop in Russian imports aligns with statements from Indian refiners that they have stopped purchasing Russian crude, according to the sources mentioned, reported Hidustan Times. In response to a news report on January 9, Reliance Industries Ltd (RIL), India's largest private refiner, stated on social media platform X that it does not expect "any Russian crude" deliveries in January. RIL has a refining capacity of over 68 million tonnes per year.
"The fall in merchandise imports from Russia is expected to be sharper in coming months when Indian refiners will move to buy cheaper Venezuelan crude as compared to Russian oil," Hindustan Times cited one of the sources as saying.
US tariffs, Venezuela option reshape India's energy trade
Indian refiners are considering an offer from the US to buy Venezuelan crude. On January 31, US President Donald Trump told reporters on Air Force One that India would purchase Venezuelan oil. Prior to US sanctions on Venezuela, India was a major buyer of Venezuelan crude.
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The Trump administration, on February 6, removed the 25 per cent punitive tariff on Indian goods, stating that India had agreed to stop, directly or indirectly, from importing oil from the Russian Federation and instead purchase energy products from the US. The US had also expressed its willingness to see India purchase energy products from Venezuela.
Recalling, India had purchased crude from Venezuela amounting to $14.10 billion in 2012-13. Venezuelan crude imports gradually reduced over time due to geopolitical issues and eventually came down to zero in 2021-22, as per official figures cited by Hindustan Times.
In contrast, crude imports from Russia were minuscule in 2011-12, which escalated from 2022-23, reaching over $31 billion. The amount reached $46.49 billion in 2023-24 and went up to $50.28 billion in 2024-25.
