India’s imports of Russian crude oil doubled in March 2026, pushing total purchases of Russian fossil fuels to €5.8 billion, even as Moscow’s export revenues surged 52% month-on-month to €713 million per day — the highest in two years — amid rising prices and sanctions-driven shifts in trade flows.
According to Finland-based centre for research on energy and clean air, crude oil dominated India’s imports at €5.3 billion, accounting for 91% of total purchases. Coal imports stood at €337 million, while oil products were valued at €178.5 million, indicating continued diversification across fuels.
In February, India was the third largest importer, purchasing Russian hydrocarbons worth €1.8 billion. Crude oil constituted the largest share at 81 per cent (€1.4 billion), followed by coal (€223 million) and oil products (€121 million).
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“India’s imports of Russian crude oil doubled month-on-month… state-owned refineries’ imports… saw a massive 148% increase,” the report said, highlighting a sharp rise in spot purchases.
The state-owned Mangalore and Visakhapatnam refineries had stopped Russian imports at the end of November 2025, but purchases resumed in March 2026. “Private refineries, meanwhile, registered a more modest 66% month-on-month increase, but remained lower than the same time last year,” it said.
The increase came despite a 4% decline in India’s overall crude imports in March, signalling a shift towards Russian barrels rather than higher demand. State-run refiners, including New Mangalore and Visakhapatnam, resumed Russian purchases after halting imports in November 2025.
Russia’s revenue surge was driven by both price and volume dynamics. Crude export earnings rose 94% month-on-month to €431 million per day, led by a 115% increase in seaborne crude revenues to €372 million per day. Volumes rose 29%, while prices surged sharply.
Failure of the EU Price Cap
Urals crude averaged $94.5 per barrel in March, up 67% month-on-month and more than double the EU-UK price cap of $44.1 per barrel. The discount to Brent narrowed to $6.4 per barrel, halving from previous levels.
The price rally also boosted Russia’s fiscal revenues. Early estimates indicate mineral extraction tax collections rose 114% month-on-month to €7.4 billion, reflecting the direct impact of higher crude prices.
India and China together accounted for nearly 90% of Russia’s crude exports in the first quarter of 2026. China remained the largest buyer with a 51% share, while India accounted for 38%, underlining Moscow’s dependence on Asian demand.
Meanwhile, sanctions continue to reshape logistics. In March, 48% of Russia’s seaborne oil was transported by sanctioned ‘shadow’ tankers, with another 44% carried by G7+ vessels. Of total crude shipments, 62% were moved by sanctioned shadow vessels.
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The number of vessels under the Russian flag rose 37% since early 2025 to 297, as operators shifted away from traditional registries amid tightening enforcement.
Shadow Tankers
CREA flagged rising risks from these networks. Over one-third of the 150 shadow tankers used in March were more than 20 years old, raising concerns over safety and insurance. At least 48 vessels were operating under false flags at the end of the month.
India also played a role in downstream trade. Refineries in India, Turkiye and others processing Russian crude exported €830 million worth of refined products to sanctioning countries in March, including €304 million to the EU and €168 million to the US.
“Refineries in India, Turkiye, Brunei, and Georgia that use Russian crude exported €830 mn of oil products to sanctioning countries in March,” the report said.
Despite sanctions, enforcement gaps persist. Fourteen shipments of oil products derived from Russian crude were received at EU ports in March, including cargoes routed via India.
Physical disruptions were also visible. Ukrainian drone strikes led to a 53% drop in oil loadings at key Baltic ports in late March, with Ust-Luga alone recording a 74% year-on-year decline in shipments over a nine-day period.
However, elevated prices offset volume losses, keeping Russian revenues strong.
TOPICSCrude oilThis article was first uploaded on April fifteen, twenty twenty-six, at three minutes past six in the evening.