Indian refiners have temporarily suspended new orders for Russian crude oil as they await further clarity on the implications of heightened US sanctions targeting Russia’s oil sector. Sources revealed on Tuesday that major players, including state-run Indian Oil and private conglomerate Reliance Industries, are refraining from placing fresh orders while assessing the situation. Some refiners are reportedly turning to spot markets to meet their immediate crude oil needs. The US recently imposed sanctions on Russia’s top oil producers, Lukoil and Rosneft, prompting Indian refiners to reconsider their import strategies. Reliance Industries, India’s largest buyer of Russian oil, has committed to complying with the sanctions while maintaining ties with existing suppliers. However, the company plans to halt imports from Rosneft, a sanctioned entity. Industry insiders noted that refiners are cautious about engaging with traders linked to sanctioned entities, as banks may refuse to process payments. India, which imported 1.9 million barrels per day of Russian oil in the first nine months of 2025, accounting for 40% of Russia’s total exports, has seen a decline in imports due to narrower discounts and tighter supplies. Refiners are increasingly sourcing crude from the Middle East and the US to mitigate risks. The pause in Russian oil orders could potentially facilitate a trade deal between India and the US, as compliance with sanctions aligns with broader diplomatic objectives.
Indian refiners pause new Russian oil orders, await clarity amid higher US sanctions
