Diversification Strategy Succeeds: India Maintains Energy Supply Despite Russian Decline

India’s crude oil diversification strategy demonstrated its effectiveness in 2025, maintaining overall energy supply levels despite significant declines in Russian imports. While US crude imports to India increased by 65.6% to $8.2 billion during April-December 2025, Russian crude imports fell by more than 17%, declining from $40 billion to $33.1 billion in the same period.
December 2025 import data shows successful diversification in practice. Although Russian crude shipments declined by 15.15% to $2.71 billion from $3.2 billion in December 2024, total crude imports from all sources reached $11.29 billion, up 9.1% from $10.34 billion in December 2024. This demonstrates India’s ability to replace Russian supplies with alternative sources.
Key alternative suppliers stepped up to fill the gap. Saudi Arabia achieved remarkable growth of 61%, delivering crude worth $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 the UAE supplied $1.65 billion, reflecting a 6% annual rise. These increases collectively offset the Russian decline.
The diversification strategy adapted to changing circumstances including trade policy developments. The US imposition of a 25% punitive tariff on Indian goods on August 27, 2025, designed to discourage purchases of sanctioned Russian petroleum, prompted procurement adjustments. Russian crude imports declined from $3.62 billion in July 2025 to $2.71 billion in December 2025, while other suppliers expanded shipments.
For the April-December 2025 period, India’s cumulative crude imports from approximately 39 countries totaled $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. This relatively stable total, despite the significant shift in supplier composition, validates the effectiveness of India’s diversification approach to energy security.