Daijiworld Media Network – New Delhi
New Delhi, Oct 28: Indian oil refiners have paused fresh orders of Russian crude following new sanctions imposed by the United States and the European Union on Moscow’s energy sector. The refiners are awaiting clarity from suppliers and the government before resuming any new deals, Reuters reported.
The fresh sanctions — announced by the US, EU, and the UK — target Russia’s leading oil companies, including Lukoil and Rosneft. The International Energy Agency (IEA) noted that India had purchased 1.9 million barrels per day of Russian oil during the first nine months of 2025, accounting for nearly 40% of Russia’s total exports.
However, India’s imports of Russian oil declined by 8.4% between April and September compared to the previous year, mainly due to reduced discounts and supply constraints. Refiners have since increased their purchases from the Middle East and the United States to bridge the gap, according to trade data and shipping sources.
Public sector giant Indian Oil Corporation (IOC) has already floated a tender for fresh oil procurement, while Reliance Industries has ramped up spot market acquisitions, sources confirmed.
Industry insiders suggest that Indian oil companies may now significantly scale down Russian imports to comply with the latest US sanctions, a move that could also ease progress toward a potential trade deal with Washington. Reliance, India’s largest buyer of Russian oil, has announced its commitment to comply with the sanctions and reportedly plans to stop imports from Rosneft.
“We have not placed orders yet for fresh cargoes and have cancelled some that were booked from traders with links to the sanctioned entities,” a source told Reuters. Another added, “We need to ensure our purchases are not linked to sanctioned entities as banks will not process payments.”
IndianOil chairman Arvinder Singh Sahney confirmed the company’s adherence to international sanctions but did not specify whether Russian crude imports at discounted rates would be halted. With this, IndianOil becomes the second major refiner after Reliance to commit to observing the new US and EU restrictions.
Meanwhile, India’s crude imports from the United States have surged to their highest level since 2022. According to Kpler data, imports reached 540,000 barrels per day until October 27 and are projected to hit 575,000 bpd by month-end. November estimates stand between 400,000 and 450,000 bpd — a sharp rise from the annual average of 300,000 bpd.
Government and trade sources told PTI that Indian refineries have increased purchases of American crude varieties such as Midland WTI and Mars to diversify their energy portfolio and demonstrate stronger cooperation with Washington amid evolving global trade dynamics.