India’s oil refineries have stopped procuring new Russian oil following increased sanctions imposed by the United States against top energy companies in Moscow. This development has led to payment uncertainties and a wait-and-see approach from buyers, as per industry insiders.
The ambiguity surrounding the situation has prompted some refiners to turn to spot markets to fulfill immediate crude oil needs. State-owned Indian Oil Corporation (IOC) has initiated a fresh tender for oil, while Reliance Industries, the largest private refiner in India, has intensified spot purchases, sources revealed.
Recently, the US imposed fresh sanctions on Russia’s leading oil producers, Lukoil and Rosneft, extending the existing restrictions enforced by the European Union and the UK due to the conflict in Ukraine.
The latest sanctions have compelled Indian buyers to review their supply chains and payment methods. An official involved in crude procurement mentioned that numerous shipments, especially those associated with traders connected to sanctioned entities, have been canceled to avoid payment complications with banks refraining from processing transactions involving blacklisted companies.
Another executive in the refining sector stated that companies are awaiting clarity on whether they can secure shipments through intermediaries not under sanctions. The official added that no fresh orders will be placed until more guidance is received from the government and suppliers.
Reliance, the largest importer of Russian oil in India since 2022, affirmed its commitment to comply with all sanctions while maintaining relationships with current suppliers. The conglomerate reportedly halted oil imports from Rosneft, its primary Russian partner.
Data from the International Energy Agency, cited in a Reuters report, shows that India imported approximately 1.9 million barrels per day of Russian crude in the first nine months of 2025, accounting for around 40% of Russia’s total exports. However, due to reduced supplies and diminishing discounts, the flow has already decelerated. From April to September, Indian imports of Russian oil decreased by 8.4% year-on-year, with refiners increasing purchases from the Middle East and the US.