India-Russia Oil Trade: A new tension is brewing between the US and Russia in the global energy market. The US has imposed sanctions on two major Russian oil companies, severely impacting global oil trade. India, one of the major oil-importing countries from Russia, is feeling the impact of this decision. Although this war is focused on crude oil, its effects have spread to other oil products as well.
It is worth noting that Russia has set a new record in the sunflower oil sector. In the last four years, India’s sunflower oil imports from Russia have increased twelvefold. Russia has now become India’s largest sunflower oil supplier, surpassing Ukraine. According to industry experts, representatives from both countries have recently visited each other to strengthen the supply chain between Russia and India.
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Sunflower Oil Production in India
Sunflower oil is widely consumed in India. It is among the three most widely consumed edible oils in the country. However, only five percent of the sunflower oil consumed in India is produced domestically. According to Sanjeev Asthana, CEO of Patanjali Foods and President of the Solvent Extractors Association of India, Russia has now become the most reliable and stable source of sunflower oil in the world, giving India the assurance of regular supplies.
Russia’s Share Rises
Russia’s share in India’s total sunflower oil imports, which was only 10 percent in 2021, increased to 56 percent in 2024. According to data, India imported approximately 2.09 million tons of sunflower oil from Russia in 2024, an increase of nearly 12 times compared to 1.75 lakh tons in 2021. This increase is attributed to Russia’s stable export routes and easy access to Black Sea ports.
Ukraine’s Share Declines
Before the Russo-Ukrainian War, Ukraine was India’s largest supplier of sunflower oil. However, since the war, Ukraine has had to export a large portion of its products to European countries. This was because Russia blocked Ukrainian ports on the Black Sea, increasing the cost of shipments to India several times. Previously, Ukraine exported approximately 90 percent of its agricultural products by sea, but after the war, it had to rely on rail and road transport.
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Oil Market Situation in India
India meets approximately 60 percent of its total edible oil consumption through imports. Palm oil accounts for the largest share of this, accounting for approximately 50 percent, while soybean and sunflower oil rank second and third, respectively. When cheap oil imports increased in the 1990s, Indian farmers lost interest in sunflower cultivation. Sunflower oil imports have also increased in recent years because, for the first time, it became cheaper than palm oil in 2023 and 2024, leading to a rapid increase in demand.