Indian oil refiners are set to scale back their purchases of Russian crude following a new wave of U.S. sanctions and renewed trade discussions between New Delhi and Washington, according to industry sources and media reports.
The decision comes as the United States expands restrictions on major Russian energy companies such as Rosneft and Lukoil, intensifying global pressure on buyers of Russian oil. The sanctions give refiners until November 21, 2025, to wind down existing transactions with the affected firms.
India has been among the largest buyers of discounted Russian crude since 2022, importing nearly 1.7 million barrels per day in early 2025. However, private and state-run refiners including Reliance Industries, Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are now reviewing contracts and shipment documentation to ensure compliance with international trade norms.
Officials say the move is also tied to ongoing trade negotiations with the U.S., which has hinted at tariff relief on certain Indian exports if the country reduces its dependence on Russian oil. The decision reflects India’s strategic balancing act maintaining energy security while navigating complex geopolitical and economic interests.
Analysts believe refiners will turn to alternative suppliers in the Middle East, Africa, and Latin America to fill the gap, though this could raise costs and tighten margins. The coming months will be crucial in determining how India reshapes its crude import mix and how global oil trade patterns adjust in response.
