India to cut direct Russian oil imports from December amid US sanctions
India plans to reduce direct imports of Russian crude oil starting late November 2025 following new US sanctions on Russian exporters Rosneft and Lukoil. Major Indian refiners, including Reliance Industries and two state-controlled entities, will halt or suspend purchases, leading to a sharp drop in Russian oil arrivals in December. Recovery in imports is expected via intermediaries and alternative routes by early 2026, alongside diversification towards other crude sources.
In response to US sanctions targeting Russia’s largest oil exporters Rosneft and Lukoil effective November 21, 2025, Indian refiners that previously contributed to over half of the country’s Russian crude imports will significantly curtail direct imports from late November. Reliance Industries, holding a long-term contract with Rosneft, along with state refiners Mangalore Refinery and Petrochemicals Ltd and HPCL-Mittal Energy Ltd, have announced plans to stop Russian crude purchases. These three accounted for more than half of India’s 1.8 million barrels per day of Russian oil imports in the first half of 2025. Despite the downturn, Nayara Energy’s Vadinar refinery, partially owned by Rosneft and under EU sanctions already, is expected to continue importing Russian crude. Analysts from Kpler foresee a marked decline in Russian shipments in December, with a gradual recovery expected by early 2026 as traders adapt using intermediaries and alternative supply routes that are more complex logistically. Concurrently, Indian refiners are increasing procurement from alternative regions such as the Middle East, Latin America, West Africa, Canada, and the US. Imports of US crude peaked at 568,000 barrels per day in October due to economic factors rather than sanctions, expected to normalize to 250,000–350,000 barrels per day in the coming months. This strategic shift reflects India’s effort to comply with US sanctions while maintaining energy supplies through diversified and intermediary channels.
