India's Russian Oil Imports Plummet to 2-Year Low Amid US Sanctions, Recovery Expected

• India's crude oil imports from Russia hit a two-year low in December, falling to 1.2 million barrels per day from 1.84 million bpd in November.
• The sharp decline was primarily due to US sanctions on major Russian oil companies like Rosneft and Lukoil, disrupting supply chains.
• Major Indian buyers, including Reliance Industries and New Mangalore Refinery, significantly reduced their purchases of Russian crude oil.
• Indian refineries diversified by increasing crude oil purchases from alternative regions such as the Middle East, West Africa, and the US.
• A gradual recovery is anticipated from January as new vendors like Tatneft, Redwood Global Supply, and others facilitate Russian oil supply.

Why It Matters: US sanctions caused a temporary dip in India's Russian oil imports, but a recovery is expected soon.