The Russian oil trade with India is being dominated by three major trading houses, leading to smaller intermediaries being driven out due to rising costs. This is happening because smaller firms in Russia are facing high funding costs and limited access to Western financial resources.

Despite these challenges, Russian seaborne oil shipments to India remain strong, with volumes reaching near-record highs of 1.8 to 2.0 million barrels per day, surpassing shipments to China. Since the Ukraine conflict in 2022, India has become the largest buyer of Russian crude, accounting for over a third of its crude imports.

The consolidation of trade has allowed Russia to sell significant oil volumes to India at the smallest discounts seen since 2022, although its prices are still lower than those of U.S. and Middle Eastern grades. This situation reflects the changing dynamics of the global oil market in the midst of ongoing geopolitical tensions.