India To Cut Russian Crude Oil Imports: India is going to cut direct purchases of crude oil from Russia from the end of November. This step is being taken in view of the new US sanctions imposed on two major Russian oil companies – Rosneft and Lukaoil – from November 21. According to news agency PTI, analysts say that these restrictions may force Indian refinery companies to change their oil purchasing patterns.
Major Indian companies will reduce purchases of Russian oil
Three major companies that account for more than half of India’s total Russian oil imports – Reliance Industries Limited (RIL), Mangaluru Refinery and Petrochemicals Limited (MRPL) and HPCL-Mittal Energy Limited (HMEL) – are set to reduce direct purchases of Russian oil in compliance with the new US sanctions. Reliance has a long-term supply agreement with Rosneft, while MRPL and HMEL have decided to postpone future Russian oil shipments.
America has announced that strict economic sanctions will be imposed on Rosneft and Lukaoil from November 21. All American assets and financial transactions of these companies will be banned. Apart from this, if institutions of other countries also do large transactions with them, then “secondary sanctions” can also be imposed on them.
In the first half of the year 2025, India had imported about 18 lakh barrels per day of crude oil from Russia, in which RIL, MRPL and HMEL had more than half the share. However, the Gujarat-based Vadinar refinery (Nayara Energy, in which Rosneft has a partial stake) will continue its existing Russian oil procurement pattern, as it is already under EU sanctions and is primarily dependent on Russian crude.
Russian oil supply may fall in December
Sumit Ritolia, principal analyst at shipping data firm Kpler, says Russian crude oil shipments will see a decline after November 21 as most Indian refineries will reduce or stop direct purchases from Rosneft and Lukaoil in compliance with US sanctions. Kepler forecasts a sharp decline in Russian oil supplies in December 2025, although the situation could gradually normalize through new trade routes and alternative channels as early as 2026.
To reduce dependence on Russian oil, Indian refiners are now increasing oil purchases from West Asia, Latin America, West Africa, Canada and America. India’s US oil imports stood at 5.68 lakh barrels per day in October — the highest since March 2021.
Ritolia further said that however, the cost of sourcing oil from other countries is higher, which may reduce the price advantage. “Despite this, India’s crude oil sources are likely to become more diverse and balanced in the coming months.” Overall, the US sanctions have triggered the process of reshaping India’s energy strategy, where striking a balance between security, cost and supply stability has become a new priority.
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