India Shifts Oil Imports from Russia to Middle East Amid Sanctions Risks
Indian refiners, including Reliance and MRPL, have suspended or reduced Russian crude oil purchases due to the risk of US secondary sanctions and evolving trade tensions with the US. To compensate, they are increasing imports from the Middle East and the US. Despite the pause from some refiners, state-owned Indian Oil Corporation continues buying Russian crude compliant with sanctions.
Following recent US sanctions targeting major Russian oil companies Rosneft and Lukoil, significant Indian refiners such as Reliance Industries, Mangalore Refinery and Petrochemicals Ltd (MRPL), and HPCL-Mittal Energy have halted or paused buying Russian crude. These refiners previously accounted for over half of India's Russian crude imports, which amounted to about 920,000 barrels per day in the first half of 2025. Reliance, India's largest private refinery, is actively increasing crude purchases from Middle Eastern producers including Saudi Arabia, Iraq, and Qatar, as well as some supplies from the US, to replace the shortfall. Indian Oil Corporation, a state-owned entity, asserts it will continue sourcing Russian crude as long as it complies with international sanctions, emphasizing that while key producers are sanctioned, Russian crude itself is not. Analysts highlight logistical benefits in pivoting to Middle Eastern crude due to geographic proximity and refinery compatibility. These shifts occur amid complex India-US trade discussions, with US tariffs on Indian exports adding tension. Overall, India is navigating a challenging landscape balancing sanction compliance, energy security, and diversified sourcing strategies in its oil imports.
