India’s oil refiners have stopped placing new orders for Russian crude following the latest round of U.S. sanctions, Reuters reported, citing industry sources.
According to the agency’s interlocutors, Indian refineries are awaiting clarification from authorities and suppliers. The new blocking measures imposed by the Trump administration target Rosneft and Lukoil — Russia’s two largest oil companies, which together account for about half of the country’s oil production and exports.
“We have canceled part of our previously booked cargoes from traders linked to sanctioned companies,” one source in India’s oil sector told Reuters.
Another noted that banks “simply will not process payments” if a sanctioned entity is involved in a transaction.
To replace Russian barrels, state-owned Indian Oil Corporation has announced a tender for crude purchases, while Reliance Industries has increased spot buying, the sources said.
The Indian government is not considering the use of intermediaries — shell or proxy companies — that could buy oil from Rosneft or Lukoil and then resell it to end customers. “Indian refiners will not purchase Rosneft or Lukoil oil delivered by traders,” a Reuters source in the Indian government stated.
It remains unclear when Indian companies will resume new purchases of Russian crude, he added.
In September, India imported 1.6 million barrels per day of Russian oil, covering 36% of its total import needs. At its peak between April and June of this year, shipments reached around 2 million barrels per day. For Russian oil producers, India has become the largest maritime export market and the second-largest buyer after China when all deliveries, including pipeline exports, are taken into account.
