Secondary sanctions by major powers increasingly constrain India's energy choices. Examine this in light of India's crude import pattern since 2022, and suggest measures to protect energy security.
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Secondary sanctions penalise third countries for trading with a sanctioned state. India imports about 85% of its crude requirement [2]. For India, such measures now decide whom it can buy oil from, and not only how much the oil costs.
Sanctions and India's import pattern since 2022
- Russian pivot (2022–23): Discounted Russian crude raised Russia's share from under 3% (2021) to nearly 40% (2023). Over the same period the Middle East's share fell from about 61% to 45% [2].
- Sanctions on Russian firms (Nov 2025): U.S. sanctions on Russian oil companies cut Russia's share from about one-third to under one-quarter [2].
- Secondary tariffs (Sept 2026): The U.S. Sanctioning Russia and Iran Act of 2026 allows tariffs of up to 100% on big buyers of Russian oil. In the same month India cut Russian purchases sharply, imports from the U.S. fell to zero, and the UAE's share crossed one-fourth [1].
- Continuing uncertainty: The tariffs are only temporarily waived by an executive order of 16 Oct 2026, so the threat remains [1].
Extent of the constraint
- Concentration persists: Russia and the UAE together still supply 60% of imports [1]. The Standing Committee had warned against exactly this kind of over-dependence [3].
- Back towards the Gulf: The switch undoes the post-2022 shift away from a conflict-prone region [2][3].
- Autonomy hedged, not surrendered: Total imports rose by 9.5% month-on-month, and Russia remains a major supplier [1]. India changed the supplier mix without losing supply.
Measures to protect energy security
- Buffer stocks: The Strategic Petroleum Reserve (SPR) covers only about 9 days of net imports. With oil-company stocks the total is about 74 days, against a 90-day global norm [4]. Phase II (6.5 MMT, Chandikhol and Padur) should be fast-tracked [5].
- Wider sourcing: Spread term contracts across more producers and move more crude by pipeline [3].
- Sanction-resilient payments: Speed up rupee settlement of crude imports, which has been slow [3].
- Lower demand: Expand ethanol blending (about 1.5% to 10%, 2013-14 to 2023-24), EVs and green hydrogen [3].
- Higher domestic output: Reverse the decline in domestic crude production (CAGR –2.67%, 2014–23) through exploration reforms [2].
Since 2022, India's crude basket has followed foreign sanction decisions rather than its own plans. A layered strategy of deeper reserves, wider sourcing, rupee trade and a faster clean-energy transition would let India exercise strategic autonomy from a position of strength. That would also advance SDG 7 on affordable and reliable energy.
Sources
- 1"India slashed oil imports from U.S. and Russia in Sept.", *The Hindu*, 31 Oct 2026September 2026 import data (U.S. share zero, UAE share above 25%, Russia + UAE at 60%, +9.5% volume); Sanctioning Russia and Iran Act of 2026; 16 Oct 2026 waiver
- 2PRS Legislative Research, Demand for Grants 2026-27 Analysis: Petroleum and Natural Gas85% import dependence; Russia's and the Middle East's share shifts; Nov 2025 sanctions; domestic production CAGR –2.67%
- 3PRS Legislative Research, Report Summary: Review of Policy on Import of Crude Oil (Standing Committee on Petroleum and Natural Gas, 2023)diversification, pipelines, slow rupee settlement, ethanol blending
- 4Standing Committee on Petroleum & Natural Gas (2025-26), Sixth Report, 18th Lok SabhaSPR covers about 9 days (about 74 with industry stocks); 90-day target
- 5PIB, "Two more commercial-cum-strategic facilities of 6.5 MMT storage capacity to be established under phase-2 of SPR Programme"SPR Phase II at Chandikhol and Padur
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