Exclusive: Indian Refiners Halt New Russian Oil
Because of the new sanctions, Indian oil companies have stopped placing new orders for Russian crude oil, according to sources.
They’re waiting for the Indian Refiners government and their suppliers to explain the new rules before they do anything else.These sources told Reuters on Tuesday, that the oil companies want clear instructions before buying more oil. This pause in deals is happening because the industry is trying to figure out these complicated international rules.
In the meantime, some Indian oil companies are buying oil from the open market to keep things running. They’re switching to other sources while the situation with Russian oil is still up in the air.
This careful approach shows how much global sanctions affect the energy business. India is trying to find a balance between getting affordable energy and dealing with a changing world.
Indian oil companies are making big changes to reduce how much .
Russian crude oil they import because of new US sanctions. This lines up with global sanctions against Russia and could make trading with the United States easier.
The latest US sanctions, announced on Thursday, are aimed at Russia’s biggest oil producers, Lukoil and Rosneft. This builds on earlier actions by the European Union and the UK because of the war in Ukraine.
The state-run Indian Oil Corporation (IOC) has issued a new request for oil, looking for supplies from places other than sanctioned companies. Also, Reliance Industries, which used to be the biggest Indian buyer of Russian oil, is now buying a lot more crude oil from the open market.
This change in plans comes after Reliance said last week that it would follow international sanctions .
while still working with its current suppliers that aren’t sanctioned. The company is also planning to stop all oil imports from Rosneft.
Sources say that these measures are already in place. One source said, We haven’t ordered any new shipments yet and have cancelled some orders that were made through traders connected to the sanctioned companies.
This overall move away from Russian crude shows how much Western sanctions affect the global energy trade. By following the rules, India is not only dealing with a tricky situation but could also be making it easier to improve its trade relationship with the US.
Indian oil companies are making sure their crude oil purchases aren’t linked to sanctioned companies,
Because banks are having problems processing payments. Data shows that the country’s imports of Russian oil have already decreased.
Payment Snags Mean Careful Buying
Refiners are worried about secure payments. One insider said, We need to make sure our buys aren’t tied to anyone facing sanctions, or the banks won’t process the payments.
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This means a change in how oil is bought. Another source said their business is hitting pause on new orders to see if they can reliably get oil only from traders and groups without sanctions.
Russian Oil Imports Dip
This change lines up with recent trade numbers. The International Energy Agency (IEA) says India bought 1.9 million barrels of Indian Refiners daily in the first nine months of the year, which was 40% of Russia’s total oil shipped by sea.
But recently, this reliance has dropped. Trade info and shipping numbers show that Indian Refiners Russian oil imports fell by 8.4% between April and September, compared to last year. This is because the price breaks on Russian crude weren’t as good, and there wasn’t as much oil available.
Because of this, Indian refiners are finding oil from other places, looking for more shipments from the Middle East and the US to keep up with the country’s energy needs.
Indian refiners are about to slash how much Russian crude oil they import to stick to the new.
US sanctions. Staying in line with these rules could really help India reach a bigger trade deal with the United States.
This move comes after Reliance Industries, India’s biggest buyer of Russian oil, said last week they will follow the international sanctions. While keeping good relationships with current suppliers, Reuters reports that the business plans to stop oil imports from Rosneft, the Russian oil giant facing sanctions.
Indian Refiners Stop Orders, Check Supply Chains
This compliance is already happening. Sources say Indian Refiners are taking action, like axing current orders and pausing new ones.
We haven’t ordered any new shipments yet and ditched some orders from traders tied to groups with sanctions, one source shared.
The main reason is the financial freeze on groups with sanctions. One source explained, We need to make absolutely sure our purchases aren’t linked to these groups because banks won’t process the payments. Because of this, other companies are being careful, Indian Refiners taking a wait-and-see approach to see if they can get shipments just from traders without sanctions.
Indian Refiners Buys Less Russian Oil: Here’s the Scoop
Indian Refiners changing where it gets its oil, and here’s the deal. The IEA says India used to buy loads of Russian oil (1.9 million barrels a day) in early 2025. That was a huge part (40%) of Russia’s oil sales.
But lately, India’s buying a bit less Russian oil – down about 8.4% from last year (April to September). At first, it was because the price wasn’t great, and it was a pain to get it. So, oil processors started looking at the Middle East and the United States.
Now, new rules are speeding things up.
Reuters says Indian oil companies are holding back on ordering more Russian oil. They’re waiting to hear from the government on dealing with these new U.S. rules.
This pause shows just how much these rules are changing things, making India rethink its oil sources.
Because of all this, big Indian Refiners Indian oil companies are finding new suppliers. For example, Reliance Industries (a big customer of Rosneft, the Russian oil bigshot facing penalties) is now buying oil on the open market.
Indian Oil Corporation (IOC), which the government runs, has also asked around for oil. This shows the entire industry is trying to find oil from places without penalties.
Payment Problems Forsce Change
The main thing is money. One person said that refiners are stopping new orders and dropping some they already had because they involved companies facing penalties.
The issue is paying for the oil. Another person said they need to be sure their buys aren’t tied to companies facing penalties because banks won’t handle those payments. That’s why everyone’s being careful and waiting for official advice.
