India Takes the Lead in Russian Urals Crude Purchases
In 2025, India has solidified its position as the primary importer of Russia's Urals crude oil, particularly through its private refiners Reliance Industries Limited (RIL) and Nayara Energy. These two players have significantly ramped up their procurement of this discounted medium-sour crude, collectively acquiring 45% of Russia’s Urals exports to date.
Reliance Becomes the World's Top Urals Buyer
According to recent industry data, India imported an impressive 231 million barrels of Urals crude through June 24, with Reliance and Nayara accounting for the lion’s share. Reliance alone has purchased 77 million barrels this year, solidifying its status as the largest global buyer of Urals crude. This surge is backed by a decade-long agreement signed with Russia starting January 2025, allowing Reliance to import up to 500,000 barrels per day.
As a result, Urals crude now comprises 36% of Reliance’s total crude oil intake, a significant jump from just 10% in 2022. Meanwhile, Nayara Energy has also increased its dependence on Urals crude, with the share rising to 72% of its total oil procurement, up markedly from 27% three years ago.
Government-Owned Refiners and Market Dynamics
Unlike private players, India's government-controlled refiners – including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum – have not entered into long-term contracts with Russia. These companies face constraints such as currency usage restrictions for their oil imports.
The rising demand for Urals crude by Reliance and Nayara has tightened the supply in the spot market, leading to a reduction in discounts. Industry sources reveal that the discount on Urals crude compared to Dated Brent has narrowed to under $2 per barrel in 2025, down from nearly $4 in the second quarter of last year.
Strategic Diversification by Government Refiners
In response to changing market conditions, refiners like Hindustan Petroleum are diversifying their crude sources. They are increasingly looking towards African producers such as Gabon and the Republic of the Congo to meet their needs.
With OPEC+ signaling an intent to regain market share, there is an expectation of increased Middle Eastern crude flows throughout the year. This could particularly benefit India with higher crude oil availability from countries like Saudi Arabia.
India’s Growing Role in Russian Energy Trade
India’s dominant role in absorbing discounted Russian Urals crude underscores a broader shift in the global energy landscape. By controlling around 80% of Russia’s seaborne exports of Urals in 2025, India not only secures a steady energy supply but also becomes a critical source of revenue for Russia amid shifting international sanctions and market realignments.
- 45% share of Russia’s Urals exports acquired by Indian private refiners.
- 36% of Reliance’s crude portfolio now consists of Urals crude.
- Urals crude discount to Brent has shrunk to under $2 per barrel.
- Hindustan Petroleum expanding procurement from African nations.
- Potential increase in Middle Eastern crude flows to India anticipated.
