India cuts Russian oil purchases: Guess who’s taking advantage

NEW DELHI: India reduced its imports of Russian oil by the end of last year, a move that has inadvertently benefited China. In December 2025, Reliance Industries stopped importing Russian oil, reportedly in response to objections from the United States. This decision led to a decline in the flow of Russian oil to India, creating an opportunity for China to purchase the crude at lower prices.

The European Union and the U.S. continue to maintain sanctions on Russia following the Ukraine invasion. In this context, Russia is offering significant discounts to its buyers. While India had previously enjoyed the largest discounts, the reduction in its demand has impacted Russia’s revenues, with oil remaining the country’s main source of income. Against this backdrop, China has opted to increase its imports of Russian oil.

China’s purchases are now at their highest level in roughly three years. The crude shipped to China is priced lower than Iranian oil, providing a major advantage for Beijing. India’s declining imports have effectively opened the door for China to capitalise on these discounts. Imports of Urals crude oil by India have been falling steadily, averaging 929,000 barrels per day in December last year—the lowest since December 2022.