New Delhi: Indian refiners have temporarily stopped buying new shipments of Russian crude after the United States expanded sanctions on Moscow’s key energy producers, heightening payment risks and creating uncertainty among buyers, industry sources told Reuters.
The move follows Washington’s decision last week to impose sanctions on Russia’s top two oil companies, Lukoil and Rosneft, widening restrictions already enforced by the European Union and the United Kingdom over the conflict in Ukraine. The tighter measures have disrupted payment channels and left Indian refiners awaiting guidance from the government and suppliers.
“Several cargoes have been cancelled, especially those linked to traders with exposure to sanctioned entities,” said an official involved in crude procurement. “No one wants to risk payments getting stuck since banks will not process transactions tied to blacklisted companies.”
In response, some refiners have turned to the spot market to secure short-term supplies. State-run Indian Oil Corporation (IOC) has issued a new tender for crude, while Reliance Industries, the country’s largest private refiner, has increased spot purchases, according to sources.
Reliance, which became India’s biggest buyer of Russian oil after 2022, has confirmed it will fully adhere to international sanctions while maintaining existing supplier relationships. The conglomerate has also halted imports from Rosneft, its principal Russian partner. Industry officials said refiners are evaluating whether cargoes can still be procured through intermediaries not covered by sanctions. “Until we get more clarity from the government and suppliers, we are not placing fresh orders,” one executive said. According to International Energy Agency data cited by Reuters, India imported around 1.9 million barrels per day of Russian crude in the first nine months of 2025, accounting for about 40 per cent of Russia’s total exports. However, tighter supplies and diminishing discounts have already reduced the inflow, with imports from Russia falling 8.4 per cent year-on-year between April and September as refiners boosted purchases from the Middle East and the United States.agencies