A week ago, U.S. President Donald Trump delivered a blunt economic blow to New Delhi, doubling tariffs on Indian goods from 25% to 50% in retaliation for what Washington calls India’s indirect support for Vladimir Putin’s war in Ukraine. The charge: India has been bankrolling Russia’s war chest by continuing to buy huge volumes of Russian crude.
The numbers are striking. India’s imports of Russian commodities soared to $65.7 billion in 2024, up from just $8.25 billion in 2021, according to The Business Standard. By contrast, the European Union and the U.S. have slashed their Russian imports by more than 80% in a bid to starve Moscow’s military machine.
Faced with Trump’s punitive tariffs and rising diplomatic heat, India is now moving swiftly to recalibrate its energy supply lines, turning to Africa, the Middle East, and the United States in a sudden buying spree.
India’s New Oil Basket
In recent weeks, Indian refiners have lined up major spot purchases:
- Two million barrels of Nigerian crude for September and October delivery
- One million barrels of Angola’s Girassol crude
- Three million barrels of Abu Dhabi Murban
- One million barrels of U.S. Mars
Notably, state-owned Bharat Petroleum Corporation Limited (BPCL) has returned to the spot market — something it had largely avoided while gorging on discounted Russian oil. At its peak in 2024, Russia supplied 40% of India’s total crude imports, allowing New Delhi to meet soaring domestic demand without turning to the volatile spot market.
Nigeria’s Sweet Crude and a New Rival
Nigeria’s low-sulfur crude is especially attractive to India’s refining sector. But India’s pivot may be complicated by a powerful new competitor — Nigeria’s own Dangote Refinery.
The $20-billion facility, owned by Africa’s richest man Aliko Dangote, began operations in 2024 after years of delays. With a 650,000-barrel-per-day capacity — larger than any refinery in Europe — Dangote’s plant produces diesel, gasoline, aviation fuel, and naphtha. Though not yet at full capacity, it is already transforming Nigeria from a raw crude exporter into a net exporter of refined products.
Until recently, the refinery imported most of its crude from the United States, Brazil, Equatorial Guinea, Angola, and Ghana, as local traders struggled to meet demand. That is changing fast. Improved coordination with Nigerian producers and government agencies has made local supply more reliable.
Last month, Dangote sourced 53% of its feedstock from Nigerian producers (up from almost zero at launch) and 47% from the U.S.. Vice President of Dangote Industries, Devakumar Edwin, says the refinery is now running at ~550,000 barrels per day — 84.6% of maximum capacity — and plans to buy 100% Nigerian crude by year’s end.
Beyond Oil: India Eyes Rare Earths to Counter China
Oil is not the only strategic resource in India’s crosshairs. New Delhi is also moving to break China’s dominance in rare earth element (REE) supply, particularly after Beijing tightened export restrictions in 2024.
India’s Ministry of Mines has signed cooperation agreements with mineral-rich nations including Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Côte d’Ivoire, as well as with the International Energy Agency (IEA). Minister of State for Atomic Energy Jitendra Singh said these deals are aimed at “developing bilateral cooperation with countries having rich mineral resources.”
The Russian Question Remains
Despite the public pivot, senior Indian officials and oil executives insist they will not simply walk away from Russia. Two sources told Reuters that India’s Russian crude purchases are bound by long-term contracts and that an immediate halt is “not so simple.”
One source argued that India’s imports have actually helped stabilise global oil prices, while another stressed that Russian crude is not subject to direct international sanctions — unlike oil from Iran or Venezuela — and remains the cheapest large-scale option for India.
India’s foreign ministry has echoed this stance, describing ties with Moscow as a “steady and time-tested partnership”. On energy, officials say procurement decisions depend on availability, pricing, and prevailing global conditions — a diplomatic way of saying that cost and security of supply still trump political pressure.
