India's Russian Crude Imports Hit Record 50.83% Share in July 2026, Saving $650 Million Monthly
India's Russian crude imports hit a record 50.83% share of total imports in July 2026, up 62.4% year on year, as the Middle East's share fell to below 35%. The shift saved India over $650 million monthly, with Urals crude priced $9.5–$11.5 per barrel below Middle East grades. Refining margins rose above $14 per barrel, as India exported diesel to Europe. The rerouting of trade flows increased tanker demand and freight costs, while the Russian crude discount covered geopolitical risks, reshaping global energy balances.
In July 2026, India's crude oil imports from Russia rose 62.4% year on year, accounting for 50.83% of total monthly crude imports—surpassing 50% for the first time—a record high. During the same period, the share of Middle Eastern crude in India's imports shrank from over 60% to below 35%. In January 2026, Indian refiners had cut Russian crude purchases due to tariff pressures, but imports rebounded sharply six months later.
After the US-Iran conflict, transport risks in the Strait of Hormuz increased, and Middle Eastern countries raised official selling prices to Asia. The landed cost of Russian Urals crude on India's west coast was $9.5 to $11.5 per barrel lower than that of comparable medium sour crude from the Middle East. Based on India's average daily imports of about 2.1 million barrels of Russian crude, monthly cost savings exceed $650 million.
India's integrated refining margins rose above $14 per barrel in July 2026. India refines Russian crude into diesel and exports it to Europe, with a significant processing spread. This model has altered traditional trade flows: Russian crude is shipped to India via the Cape of Good Hope, Middle Eastern crude is redirected to Europe, and Indian refined products are then shipped back to Europe. The longer logistics chain has increased global tanker ton-mile demand, keeping freight rates elevated and raising the hidden costs of global energy. Currently, the discount on Russian crude covers geopolitical risks, and global energy markets are forming a new balance through adjustment.