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India’s Refiners Drop Russia, Pivot to US and Gulf Crude After Sanctions Take Effect
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India has sharply reduced purchases of Russian crude set for delivery in December, signaling that US sanctions and trade pressure are reshaping one of Moscow’s last major export markets, Bloomberg reported on November 11.
According to people familiar with the matter cited by Bloomberg, five major Indian refiners—Reliance Industries, Bharat Petroleum, Hindustan Petroleum, Mangalore Refinery and Petrochemicals, and HPCL-Mittal Energy—have not placed any orders for Russian oil for next month.
Crude deals for the following month are typically finalized by the 10th of the current month, indicating a significant shift in buying patterns.
Without India’s shoulder to lean on: Russia left without oil orders for December
— NEXTA (@nexta_tv) November 11, 2025
Five of India’s largest refineries — which account for two-thirds of the country’s imports of Russian oil — have not placed a single order for December, Bloomberg reports. Normally, deals for the… pic.twitter.com/3q0MYCCzj8
The change comes after President Donald Trump doubled tariffs on all Indian imports to 50% in August, followed by sweeping US sanctions last month targeting Rosneft PJSC and Lukoil PJSC, Russia’s two largest oil producers.
India, the world’s third-largest crude importer, had become increasingly dependent on discounted Russian barrels since 2022—a relationship Washington has long criticized as indirect funding of Moscow’s war in Ukraine.
The five refiners accounted for roughly two-thirds of India’s Russian oil imports this year, according to energy analytics firm Kpler.
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Their recent caution, Bloomberg noted, coincides with ongoing trade negotiations between New Delhi and Washington, which Trump were “getting pretty close” to a conclusion. As part of those talks, India has reportedly pledged to boost purchases of US crude.
Only two processors—Indian Oil Corp. (IOC) and Nayara Energy Ltd.—have placed Russian orders for December. IOC is said to be buying from non-sanctioned suppliers, while Nayara, part-owned by Rosneft, remains reliant on Russian crude.
In the spot market, Russian barrels offered by non-sanctioned intermediaries are reportedly trading at $3–4 per barrel discounts, yet Indian refiners are hesitant due to complex compliance checks to ensure no sanctioned entities are involved in the supply chain.
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So far this year, Russian oil has accounted for 36% of India’s total crude imports, but alternative sourcing is now accelerating amid expectations of a global oil glut.
IOC has already tendered to buy up to 24 million barrels from the Americas for early 2025 delivery, while Hindustan Petroleum recently purchased 4 million barrels of US and Middle Eastern grades for January arrival.
According to Bloomberg, executives from India’s state-owned refineries held meetings last week in Abu Dhabi with Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) on the sidelines of an energy conference. Both producers—which together pump more than 13 million barrels per day—assured Indian buyers of stable supplies to replace sanctioned Russian volumes.
To reinforce its competitive edge in Asia, Saudi Arabia has cut December prices for its crude grades: Arab Light, Extra Light, and Super Light will drop by $1.20 per barrel, while Arab Medium and Heavy will decline by $1.40, Bloomberg said.
Earlier, reports emerged that Russian crude oil was trading in Asian markets at its most significant discount relative to the Brent benchmark in one year.
This pricing trend is a direct result of key Indian and Chinese refiners reducing their procurement volumes following the implementation of new United States sanctions targeting major Russian energy producers.
-111f0e5095e02c02446ffed57bfb0ab1.jpeg "Photo of Roman Kohanets")
