Indian imports of Russian oil will remain a key agenda item during Russian President Vladimir Putin’s visit to India for the 23rd India–Russia Annual Summit tomorrow. Bilateral trade between the two countries has undergone a phenomenal shift in the last four years after India accepted Russia’s offer of discounted crude, helping reduce India’s import bill for the commodity while providing a lifeline to Russia’s war-affected economy.
Total trade between the two countries stood at $68.7 billion in 2024–25, five percent higher than $65.4 billion in 2023–24, which itself marked a 32.5% year-on-year jump from $49.4 billion in 2022–23—driven largely by India’s high crude oil imports from Russia. In 2020–21, before the Ukraine war pushed Russia to offer record-low crude prices to friendly countries like India, bilateral trade was just $8.1 billion. It rose 61.21% to $13.1 billion the following year and then surged 276% to $49.4 billion in 2022–23.
With the US imposing additional tariffs and sanctions on countries continuing to purchase Russian oil, high-level bilateral engagement has become essential for Moscow to ensure India remains a buyer. For India, Russia has become its largest crude supplier, accounting for 30–35% of total oil imports—making discounted crude the backbone of the partnership. “India’s current engagement with Russia rests on three pillars—energy, defence and diplomacy. Energy now dominates the relationship,” says Ajay Srivastava, founder of the Delhi-based think tank Global Trade Research Initiative (GTRI).
