Indian oil refiners have suspended new orders of Russian crude oil until there is clarity over compliance with recent international sanctions imposed by the U.S. These shifts come following its imposition of stringent measures targeting major Russian oil producers like Rosneft and Lukoil as part of efforts to cut off Moscow from revenue gained during Ukraine conflict, according to Reuters reports.
Reliance Industries, India’s top importer of Russian oil, announced it plans to abide by Western sanctions while maintaining supplier relationships. Reliance operates the world’s largest refining complex in Jamnagar, Gujarat, and had longstanding agreements with Rosneft for nearly 500,000 barrels per day purchases; due to sanctions however, Reliance plans to discontinue imports from Rosneft altogether and is considering alternative sourcing strategies as a response.
State-owned refiners like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) are reviewing their Russian oil trade documents to comply with new sanctions, while exploring options such as Middle Eastern or US markets to help prevent supply disruptions.
According to The Economic Times.
Economic Implications
Russia has long been India’s major source of discounted crude oil imports, accounting for roughly 40% of total imports during the first nine months of 2025. Russia’s withdrawal may increase procurement costs – potentially rising India’s import bill by less than 2% per year – but refiners remain confident about adapting to changing landscape by diversifying sources for crude oil purchases. (Source Reuters).
Government Stance
Although India has not officially issued an order to cease Russian oil imports, refiners have aligned their procurement strategies with international sanctions in order to avoid secondary sanctions and maintain access to global financial markets. The Indian approach focuses on maintaining energy security while meeting international norms. A recent Economic Times article also notes this fact.
Future Outlook
Indian refiners are closely watching developments and await further guidance from government and international bodies. Their ability to adapt will be essential in maintaining energy security and economic stability, so continued engagement with alternative oil suppliers as well as investments in refining capacities will have an enormous impact on shaping India’s energy landscape in coming months.