“However, there would be an economic cost due to loss of discounted Russian crude,” Ritolia observed. Russian crude imports dipped in December to around 1.2 million barrels per day, the lowest level in nearly three years, reflecting tighter sanctions, logistics constraints, and growing trade uncertainty, according to Kpler. After Russia’s invasion of Ukraine in 2022, flow of Russian crude to G7 and EU were cut off due to sanctions, forcing Moscow to sell crude at a discount to Asian buyers like China and India. The trade tapered off after Trump doubled duty on Indian goods to 50 per cent from August 27, 2025 as penalty for bankrolling Kremlin’s war chest. Despite the sanction and uncertainty over the US-India free trade talks, Indian refiners are still buying oil from Russia from non-sanctioned sources such as Rusexport, Tatneft and Alghafmarine.

Source: The Telegraph January 08, 2026 23:41 UTC