Indian refiners pause new Russian oil orders, await clarity: Report

Indian refiners have not placed new orders for Russian oil purchases since sanctions were imposed, as they await clarity from the government and suppliers, sources told Reuters on Tuesday. The development comes after the European Union, the UK, and the United States imposed further restrictions on Russia, including fresh US sanctions on major producers Lukoil and Rosneft.

In the first nine months of 2025, India imported 1.9 million barrels per day of Russian oil, accounting for 40 per cent of Russia's total exports, according to the International Energy Agency. However, between April and September, imports fell by 8.4 per cent year-on-year as discounts narrowed and supplies tightened, pushing refiners to seek alternatives in the Middle East and the US.

Reliance Industries, the country’s top buyer of Russian oil, stated that it will abide by the sanctions while maintaining its relationship with current oil suppliers. The news agency also reported that the firm plans to stop importing oil from Rosneft.

A source familiar with recent procurement decisions confirmed to the news agency that new orders have not been placed for fresh cargoes and some that were booked from traders with links to the sanctioned entities have been cancelled. A third source highlighted that they need to ensure that their purchases are not linked to sanctioned entities as banks will not facilitate payments. A separate source said his firm is waiting to see if it can get cargoes from non-sanctioned traders or entities.

Some refiners are tapping the spot markets to meet their crude oil needs, said the sources. State-run Indian Oil has issued a tender for purchase of oil while conglomerate Reliance Industries has boosted purchases from spot markets, according to sources.

Indian refiners are poised to sharply curtail imports of Russian oil to comply with the new US sanctions, potentially removing a major hurdle to a trade deal with the US.