Is India reducing its Russian oil imports due to sanctions? Here’s what we know

Indian refiners are set to reduce imports of Russian crude oil significantly in December, reaching the lowest levels in at least three years, as per a report in Reuters. This follows a peak in November and reflects efforts to comply with Western sanctions and avoid regulatory issues. The reduction will impact India's energy supply as the country looks for alternative crude sources.

As per the report, the decision comes amid intensified sanctions by Britain, the European Union, and the United States against Russia over the Ukraine conflict. Washington's latest measures target major Russian producers Rosneft and Lukoil, requiring buyers to end transactions by November 21.

The EU has set a January 21 deadline, after which it will not accept fuel from refineries processing Russian crude within 60 days of the bill of lading.

Most Indian refiners, including Mangalore Refinery and Petrochemicals, Hindustan Petroleum Corp, and HPCL-Mittal Energy, have stopped purchasing Russian oil. State-run Indian Oil Corp and Bharat Petroleum Corp will buy only from non-sanctioned entities. Nayara Energy, partly owned by Rosneft, continues to process Russian oil exclusively after other suppliers withdrew due to sanctions.

Reliance Industries has stated it loaded Russian oil cargoes committed before October 22 and will process any cargo arriving after November 20 at its refinery serving the local market. Reliance operates the world's largest refining complex, with one refinery dedicated to exports.

Bank scrutiny following the latest US sanctions has made Indian state refiners cautious. India is expected to import 600,000 to 650,000 barrels per day of Russian oil in December, including supplies to Indian Oil Corp, Nayara Energy, and some November-loading cargoes for Reliance, according to a refining source.

In November, India is projected to receive 1.87 million barrels per day of Russian crude, up from 1.65 million barrels per day in October. The increase is attributed to stockpiling ahead of US sanctions and EU rules on oil products production from 2026, a trade source said.