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Indian refiners have not submitted new orders for Russian oil since sanctions were implemented, as they seek clarity from the government and suppliers. Some refiners are turning to spot markets to fulfill their crude oil needs, according to sources who requested anonymity because they aren’t authorized to speak publicly.
Indian Oil Corporation has issued a tender for oil purchases, and Reliance Industries has increased its spot market purchases, the sources added. The European Union, the UK, and the US have imposed various sanctions on Russia over its military actions in Ukraine, including recent US sanctions targeting Russia’s leading oil producers, Lukoil and Rosneft.
Refiners in India are expected to significantly reduce Russian oil imports to comply with the new US sanctions, which could facilitate a smoother trade relationship with the US. Last week, Reliance, India’s largest buyer of Russian oil, stated it would comply with sanctions while maintaining existing supplier relationships. Reports also indicate Reliance plans to halt imports from Rosneft.
One source mentioned, “We haven’t ordered new cargoes yet and have canceled some booked through traders linked to sanctioned entities.” Another added, “We need to make sure our purchases aren’t connected to sanctioned parties since banks won’t process payments.” A third source said their company is waiting to see if it can source shipments from non-sanctioned traders or entities.
In the first nine months of 2025, India imported 1.9 million barrels of Russian oil daily, accounting for about 40% of Russia’s total exports, according to the International Energy Agency. Between April and September, India’s Russian oil imports decreased by 8.4% year-over-year, driven by narrower discounts and tighter supplies, prompting refiners to source more from the Middle East and the US, based on trade data and shipping reports.
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