Indian refineries have halted new purchases of Russian oil following the latest wave of US sanctions targeting Moscow’s key energy firms, as they await guidance from the Indian government and clarity from suppliers, according to sources quoted by Reuters on Tuesday. The new sanctions—announced last week—extend restrictions to Russia’s top oil producers, Lukoil and Rosneft, tightening measures that already ban Western firms from facilitating or financing Russian energy trade.
Refiners have reportedly turned to the spot market to meet their immediate crude oil requirements while ensuring compliance with the new rules. For instance, Indian Oil Corporation (IOC) has reportedly issued a tender to procure fresh supplies, while Reliance Industries has increased its spot market purchases.
The European Union, the UK and the US have all imposed successive rounds of sanctions against Russia over its invasion of Ukraine. The latest US actions further intensify the pressure by cutting off more Russian oil flows from global markets and targeting intermediaries linked to sanctioned companies.
Indian refiners are preparing to sharply reduce Russian crude imports to avoid falling foul of the new sanctions—a move that could also help clear the way for deeper trade engagement with the US. Reliance, India’s biggest buyer of Russian oil, has said it would comply fully with the Western sanctions while maintaining existing supplier relationships. The company is also understood to be planning to halt imports from Rosneft.
Refiners have so far refrained from placing new orders and have even cancelled some cargoes from traders linked to sanctioned entities. They also noted that payments for oil connected in any way to sanctioned companies would not be cleared by banks, and that some firms were now exploring alternative suppliers not affected by the restrictions.
India imported 1.9 million barrels per day of Russian crude during the first nine months of 2025, accounting for roughly 40 percent of Russia’s total exports, according to the International Energy Agency. However, between April and September, India’s imports of Russian oil fell 8.4 percent year-on-year as discounts narrowed and supplies tightened, prompting refiners to source more crude from the Middle East and the US.
