Effect of Fresh U.S. Sanctions on Russian Oil
Indian refineries have suspended fresh oil purchases from Russia since the United States slapped sanctions on Russian oil firms. The sanctions have been put in place due to Russia's continued actions concerning the war in Ukraine. As a result of the bans, Indian refineries have halted oil purchases for the time being and are awaiting further information on the issue. In order to deal with supply requirements, they are buying oil in the spot market. The news was reported by The Economic Times, quoting refinery officials.
Sanctions' details
On October 22, the American government blocked American businesses and citizens from buying oil from Russian businesses Rosneft and Lukoil and their subsidiaries. The bans also cautioned non-American businesses that they risk being punished if they continue to do business with these companies. The U.S. ordered any current transactions involving Rosneft and Lukoil to cease by November 21.
India's Oil Imports and Impacted Volumes
At present, a third of India's crude oil imports are from Russia. In 2025, India has imported 1.7 million barrels per day (mbd) of crude oil on average, with 1.2 mbd coming from Rosneft and Lukoil. A large part of these imports have been serviced by private players like Reliance Industries and Nayara Energy.
Refineries Focus on West Asia and the U.S.
As Western sanctions increase, Indian refineries are shifting towards suppliers in West Asia to access demand. Reliance Industries said it will abide by European Union rules on the import of refined oil products. The company said it is analyzing the effect of the new sanctions made by the U.S., the U.K., and the EU, and it will abide by all applicable laws and restrictions.
India's Strategic Response
Government and trading sources cited that Indian refineries have raised U.S. suppliers' oil bookings. It is viewed as a move to show support for U.S. policies while securing stable supply of oil for local consumption.
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