India’s State Refiner Halts Russian Crude Imports, Eyes Venezuelan Oil

India’s state-run refiner Mangalore Refinery and Petrochemicals Ltd (MRPL) are preparing to replace Russian crude oil with supplies from Venezuela as it halts imports from Russia to comply with Western sanctions, Reuters reported on January 19.

MRPL, which operates a 500,000-barrel-per-day refinery in the southern Indian state of Karnataka, has stopped importing Russian oil and is now exploring Venezuelan crude if commercial terms, including freight rates, prove favorable.

“We are in strict compliance with all sanctions in place and currently there is no Russian crude being imported,” MRPL finance chief Devendra Kumar said during an analyst call, according to Reuters.

The shift follows new sanctions imposed by the United States and the European Union. In October, Washington sanctioned Russia’s largest oil producers, while the EU announced it will stop accepting fuel from refineries that processed Russian oil shortly before shipment. MRPL exports about 40 percent of its refined fuel output, mainly to Europe.

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Kumar said higher margins on refined fuel exports are helping offset the loss of discounted Russian crude and that MRPL does not expect near-term disruptions to its exports. The company currently sources around 40 percent of its crude from the Middle East, alongside spot market purchases and domestic oil.

Other major Indian refiners, including Reliance Industries, Indian Oil Corp, and Hindustan Petroleum Corp, are also considering Venezuelan oil, according to Reuters.

MRPL is additionally seeking to boost profits by expanding direct retail fuel sales, with plans to grow its network to 500 outlets within three years and 1,000 stations within five years.

Previously, it was reported that Russian crude oil exports are increasingly stuck at sea as Moscow struggles to regain access to the Indian market, leaving dozens of tankers idling with no confirmed buyers.

The bottleneck has emerged as Indian refiners retreat from Russian barrels supplied by sanctioned companies, forcing cargoes to linger for weeks off Oman, in the Arabian Sea, and near China.

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