India to scale back Russian oil buys as US sanctions bite
Refiners led by Reliance, HPCL-Mittal and MRPL halt direct imports from Rosneft and Lukoil; Russian arrivals to dip sharply in December before gradual rerouting through intermediaries
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New Delhi: India is set to reduce its direct imports of Russian crude from late November, following new US sanctions on Rosneft and Lukoil, effective November 21.
Indian refiners accounting for more than half of the country’s import of Russian crude oil, which is turned into fuels like petrol and diesel in refineries, are expected to comply with the latest sanctions on Moscow’s two largest oil exporters, analysts said. This, according to maritime intelligence firm Kpler, will trigger a sharp decline in Russian arrivals in December, with gradual recovery projected through early 2026 via intermediaries and alternative trading routes. Top importer Reliance Industries Ltd, which has a long-term supply contract with Rosneft, will stop taking Russian oil.
Two other state-controlled refiners have said they are stopping Russian oil imports. Mangalore Refinery and Petrochemicals Ltd and HPCL-Mittal Energy Ltd, a joint venture of steel tycoon Lakshmi Mittal’s Mittal Energy and Hindustan Petroleum Corporation Ltd (HPCL), have announced plans to suspend future imports. The three accounted for more than half of the 1.8 million barrels of Russian crude oil imported in the first half of 2025.
However, Nayara Energy’s Vadinar refinery, partially owned by Rosneft and already under EU sanctions, is likely to maintain its Russian crude intake.
According to Sumit Ritolia, Lead Research Analyst (Refining & Modelling) at Kpler, Russia remained India’s top crude supplier in October, followed by Iraq and Saudi Arabia. Russian shipments to India reached 1.6-1.8 million barrels per day (mbd) before the sanctions, with declines observed post-October 21 as refiners avoided potential US OFAC (Office of Foreign Assets Control) exposure.
