So far this year, India has absorbed 80% of Russia’s seaborne exports of its flagship oil grade, with the nation’s two private refineries consuming an increasing amount of the cheap crude.
India’s growing hegemony as a customer of Urals it accounted for 74% of shipments of the grade in 2024 emphasizes both the nation’s reliance on Russian energy and its significance as a source of income for the Kremlin. Russian oil has historically been eagerly purchased by Chinese independent refineries, or “teapots,” but this year they are being squeezed by a more stringent tax system and poor local demand.
Over the past many years, the share of Urals being bought by the two private Indian refiners has increased gradually; thus far in 2025, it has increased significantly. With 77 million barrels of the grade purchased this year, Reliance is now the largest customer of Urals worldwide.
Indian refiner, which has a 10-year contract with Russia to purchase up to 500,000 barrels of oil per day starting in January. Up from 10% in 2022, 36% of Reliance’s total crude purchases currently come from Urals. Compared to 27% three years ago, the grade now makes up a staggering 72% of Nayara’s oil purchases.
The main state-owned refiners in India, Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. Ltd., are more limited in the currencies they can use to purchase their oil and have not signed any long-term agreements with Russia. In 2025, Hindustan Petroleum is bringing in barrels from countries like Gabon and the Republic of the Congo as part of a more diversified purchasing strategy.