India’s booming imports of Russian crude oil are drawing criticism from Ukrainian officials, who argue the practice is undermining Western sanctions and fueling Moscow’s war effort. As Indian Prime Minister Narendra Modi and Russian President Vladimir Putin met this week to solidify trade ties through 2030, Ukraine raised concerns that the ongoing energy trade is allowing Russia to sidestep critical economic pressure.
Since the start of the war in Ukraine, the U.S. and European Union have targeted Russian energy exports with sanctions intended to cut off revenue streams that fund the Kremlin’s military operations. However, India—now one of the top importers of Russian oil—has increased its intake of discounted crude, refining it domestically and exporting fuel products, including to Europe.
Ukrainian Member of Parliament Oleksiy Honcharenko called the arrangement “a major hole” in the sanctions regime. Indian officials argue their actions are legal and necessary for economic stability, but critics say the workaround effectively finances Russia’s war by boosting demand for its oil exports.
Economist Sergei Aleksashenko, a former Russian central bank official now living in exile, noted the global oil market’s dependency on Russian crude makes sanctions hard to enforce. Cutting off Russia entirely would likely cause prices to spike, especially in developing nations. He warned that continued evasion of sanctions could embolden Russia and prolong the conflict in Ukraine by sustaining Moscow’s oil-driven economy.
Despite Western attempts to curtail Russia’s war revenue, the India-Russia energy alliance remains strong, now expanding to include cooperation in mining, shipbuilding, and other strategic sectors.
