Indian refiners halt oil purchase from Russia amid US sanctions, await clarity from government: Sources
PTC News Desk: Indian refiners have reportedly halted new oil purchase from Russia after Washington tightened sanctions against Moscow's top energy companies, triggering payment concerns. Owing to the uncertainty over the purchase, the buyers are waiting for clarity from the government.
The growing uncertainty has led several Indian refiners to turn to spot markets to meet their immediate crude oil needs. According to sources, state-owned Indian Oil Corporation (IOC) has floated a new oil tender, while Reliance Industries, the country’s largest private refiner, has increased its spot purchases.
This comes after the US imposed new sanctions on Russia’s top oil producers — Lukoil and Rosneft — last week, extending restrictions already enforced by the EU and the UK due to the war in Ukraine.
A senior refining executive said companies are waiting for clarity from the government and suppliers before committing to new contracts. “We’re holding off on fresh orders until we know if cargoes can be sourced through non-sanctioned intermediaries,” the official said.
Reliance Industries, India’s biggest buyer of Russian oil since 2022, stated that it will fully adhere to international sanctions while continuing its relationships with other approved suppliers. The conglomerate has also halted imports from Rosneft, its main Russian partner.
According to International Energy Agency (IEA) data cited by Reuters, India imported about 1.9 million barrels per day of Russian crude during the first nine months of 2025, accounting for roughly 40% of Russia’s total oil exports.
However, tighter supplies and diminishing discounts have already reduced inflows. Between April and September, India’s imports of Russian oil dropped 8.4% year-on-year, as refiners increased their purchases from the Middle East and the United States.
- With inputs from agencies
