India's largest refinery buys first oil from Colombia - Reuters

Indian Oil Corp bought 2 million barrels of Castilla oil, with delivery scheduled for late February 2026, the media cites two sources.

The refinery has an option contract to buy approximately 12 million barrels, equivalent to six very large crude carriers.

Reuters notes that Indian Oil Corp seeks to diversify its supply as imports of Russian oil decline amid tougher US and EU sanctions on Russia.

According to Kpler analytics, in December, India's imports of Russian oil are expected to fall to a three-year low—1.2 million barrels per day—versus 1.84 million barrels per day in November.

Sources told Reuters that the deal terms, including pricing, are mutually acceptable to both buyer and seller.

Despite supply contracts with Mexico, Brazil, and Colombia, Indian Oil Corp rarely purchases South American oil, sourcing most of its demand from Russia and the Middle East.

Sanctions on Russia, implications for India

Earlier, Great Britain expanded its sanctions list against Russia, adding the country's two largest oil companies.

The US Treasury Department later imposed sanctions on Rosneft, Lukoil, and their subsidiaries, designating more than 34 firms for Russia's lack of serious commitment to the peace process in Ukraine.

India, which is closely collaborating with Russia, has experienced significant economic consequences. In November, Reliance Industries completely halted imports of Russian oil in compliance with international sanctions.

However, in December, Reliance resumed purchases of Russian oil from non-sanctioned suppliers at discounted prices and redirected the oil to its Jamnagar refinery.

According to media reports, Russian oil supplies to India in December may hit their three-year low, but volumes are likely to rise early next year after India's largest refinery resumes purchases.