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August 27 Tariff Implementation Marks Turning Point for India’s Russian Crude Imports

The August 27, 2025 implementation of a 25% US punitive tariff on Indian goods marked a clear turning point in India’s Russian crude import patterns, with subsequent months showing progressive decline. While US crude imports to India surged by 65.6% to $8.2 billion during April-December 2025, Russian crude imports contracted by more than 17%, falling from $40 billion to $33.1 billion year-on-year.

December 2025 data reveals the tariff’s cumulative impact. Russian crude shipments to India totaled $2.71 billion, down 15.15% from $3.2 billion in December 2024, making Russia the only supplier among India’s top five to record negative growth. The timing of this decline corresponds directly with the tariff implementation period.

India’s other major crude suppliers benefited from this policy-driven shift. Saudi Arabia posted exceptional growth of 61%, supplying crude valued at $1.75 billion in December 2025. The United States recorded a 31% increase to $569.30 million. Iraq contributed $2.37 billion, up 4.56%, while UAE deliveries reached $1.65 billion, reflecting a 6% annual rise.

Monthly import progression demonstrates the tariff’s effectiveness. Before the August 27, 2025 tariff, India imported Russian crude worth $3.62 billion in July 2025. Post-tariff imports were $3.59 billion in August, $3.32 billion in September, $3.56 billion in October, $3.72 billion in November, before falling sharply to $2.71 billion in December—a drop of more than 35% from November.

India’s total crude oil imports from all sources reached $11.29 billion in December 2025, up 9.1% from $10.34 billion in December 2024. Cumulative imports for April-December 2025 totaled $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. Officials emphasize that energy security through diversified sourcing remains paramount.

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