Indian refineries freeze new Russian oil orders after US sanctions
Photo: Indian refineries suspend new purchases of Russian oil due to sanctions (Getty Images)
Indian oil refineries have not placed new orders for Russian oil purchases since the imposition of US sanctions. They are waiting for clarifications from the government and suppliers, according to Reuters.
According to the agency’s sources, some refineries are using spot markets to meet their crude oil needs.
One source noted that companies "had not yet placed orders for fresh cargoes and had canceled orders booked from traders with links to sanctioned entities."
"Firm is waiting to see if it can get cargoes from non-sanctioned traders or entities," another source said.
A third source stated that its firm is waiting to see whether it can receive shipments from non-sanctioned traders or entities.
"Indian Oil has issued a tender for oil supplies while Reliance Industries (RELI.NS), opens new tab has boosted purchases from the spot market," Reuters writes.
According to the International Energy Agency (IEA), India purchased about 1.9 million barrels of Russian oil per day during the first nine months of 2025 — around 40% of Russia’s total exports.
However, imports from April to September fell 8.4% year on year due to smaller discounts and a shift toward oil from the Middle East and the United States.
India reconsiders Russian oil imports amid sanctions
The European Union, the United Kingdom, and the United States have imposed a series of sanctions against Russia over its war in Ukraine. In particular, last Thursday, the US introduced new sanctions against two leading Russian oil companies — Lukoil and Rosneft.
In response, Indian refineries said they are ready to sharply reduce imports of Russian oil to comply with new US sanctions. This could remove a major obstacle to a potential trade deal between India and the United States.
Last week, Reliance, one of India’s largest importers of Russian oil, stated that it would comply with the sanctions while maintaining relationships with existing suppliers. Reuters also reported that the company plans to halt purchases of oil from Rosneft.
Meanwhile, Bloomberg wrote that Indian state-owned refineries are studying whether they can continue accepting some Russian oil cargoes in place of energy giants targeted by US sanctions.
