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India’s refiners are preparing to reduce sharply their purchases of Russian crude after the United States imposed sanctions on Russia’s two largest oil producers, Rosneft and Lukoil, in measures announced on 22–23 October.
The steps, aimed at restricting Moscow’s oil revenue, have prompted both private and state-owned companies in India to reassess supply arrangements and documentation for compliance.
Since Russia’s invasion of Ukraine in 2022, India has become the largest buyer of discounted seaborne Russian crude. Average imports from Russia were about 1.7 million barrels per day over the first nine months of 2025. Purchases at this level made Russia responsible for roughly a third of India’s crude intake this year.
Reliance Industries, India’s biggest private refiner and the country’s largest buyer of Russian oil, is preparing to reduce—potentially to zero—its intake of Russian cargoes, according to people familiar with internal planning. The company has told counterparts it will “recalibrate” sourcing in line with government guidance and the evolving sanctions environment. Reuters reported that Reliance may halt imports under its supply arrangement with Rosneft, while the Financial Times said the company would adjust purchases following official signals from New Delhi.
State-owned refiners including Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals are reviewing bills of lading and related trade paperwork for shipments arriving after a transition period that runs to 21 November, to ensure cargoes are not sourced directly from Rosneft or Lukoil. State refiners typically buy Russian grades through intermediaries rather than directly from sanctioned entities, a practice that could continue provided transactions remain outside the scope of the new measures.
The US sanctions package represents the most extensive action to date by Washington against Russian energy producers during the war. The measures, announced by the Treasury and detailed in contemporaneous reporting, target core upstream and trading activities at Rosneft and Lukoil. Market reaction was immediate: international oil benchmarks rose by around 3–4% after the announcement, reflecting expectations of tighter prompt supplies and uncertainty over flows to Asia.
India’s adjustments follow weeks of diplomatic engagement with Washington and London over Russian oil trade. Prior to the latest steps, US officials had linked progress on a broader trade agenda with India to a curtailment of Russian crude imports. Reuters reporting last week described coordinated pressure on Asian buyers, with India signalled as a priority given the scale of its purchases and the structure of its refining industry.
Any reduction in Russian barrels will prompt shifts in India’s crude slate. Analysts and trading sources expect higher nominations from Middle Eastern suppliers and incremental cargoes from West Africa and the United States, alongside occasional spot purchases from Latin America. A recent Reuters explainer noted that Indian refiners can replace Russian barrels with alternatives from Saudi Arabia, the UAE, Iraq and Angola, though freight, quality differentials and timing will shape the speed of substitution.
Refinery configurations are a factor. Complex plants such as Reliance’s Jamnagar facility and units operated by state firms have been running significant volumes of Russian grades, including Urals and ESPO, to optimise margins. A re-optimisation is expected as refiners adjust crude diets for similar sulphur and API combinations from other regions while maintaining product yields. Traders said the presence of long-term contracts with Middle Eastern national oil companies may ease the shift, though spot market tightness could raise costs in the near term.
The policy window set by the US sanctions includes a wind-down period to late November, allowing cargoes already loaded or contracted to proceed under certain conditions. Indian refiners are therefore expected to receive some Russian shipments in the coming weeks, while minimising exposure to transactions that could fall within the prohibitions after 21 November. Compliance teams at the state firms are focused on documentation that evidences non-direct dealings with Rosneft and Lukoil once the transition period ends.
Market participants will watch for any shift in Russian exports towards alternative routes and intermediaries. Previous rounds of sanctions and price-cap measures led to increased use of non-G7 shipping and insurance, as well as a greater role for trading companies in third countries. A renewed tightening could push more volumes into opaque channels, but the immediate effect in India appears to be a decline in direct purchases and a pivot to other suppliers. Oil prices are likely to reflect both the reduction in transparent Russian flows and the pace at which replacement barrels are secured.
Nayara Energy, in which Rosneft holds a significant stake and which operates the Vadinar refinery, did not immediately comment. Its procurement strategy will be closely watched given corporate links to a sanctioned producer.
For now, the expectation among traders is that India will register a measurable, near-term fall in Russian crude arrivals, led by private refiners, with state-owned companies maintaining some purchases via intermediaries subject to compliance checks.
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