Buyers in the South Asian nation are reportedly expected to stop crude purchases due to the latest US sanctions on Rosneft and Lukoil
Russian oil supplies to major Indian refiners are likely to dwindle to almost zero following the imposition of new US sanctions on oil majors Rosneft and Lukoil, media outlets have reported.
Senior executives at Indian refining companies told Reuters and Bloomberg that the new US sanctions, which blacklist Russia’s largest oil producers, will effectively halt Russian crude flows to India.
On Wednesday, the US imposed additional sanctions on Russia, citing its “lack of serious commitment to a peace process” in the Ukraine conflict.
Reliance Industries Limited, the top Indian buyer of Russian crude, plans to reduce or halt completely its import of Russian oil, Reuters reported.
Indian state-owned refiners are scrutinizing their Russian oil trade agreements to verify that no supplies are being sourced directly from Rosneft and Lukoil, the media outlet said, citing sources. The refiners are also checking the shipping documents for Russian crude shipments arriving after November 21 to ensure they are not directly supplied by Rosneft or Lukoil, according to the report.
Rosneft holds a 49% stake in Nayara, which operates the Vadinar refinery in Gujarat.
There is likely to be a massive cut in imports, but it is unlikely to go to zero immediately as there would be some barrels coming into the market before the deadline, Reuters added, citing a refinery source.
Russia has been India’s top oil supplier since 2022, and has provided over 36% of the Asian nation’s imports so far this year, according to data from analytics firm Kpler.
The South Asian nation has simultaneously emerged as a major exporter of refined fuels to Europe.
In August, US President Donald Trump announced a 25% tariff on India as a penalty for the country’s purchases of Russian oil, which he claims is helping Russia prolong the Ukraine conflict.
Moscow has maintained that threats of sanctions or tariffs on its partners infringed on their sovereign rights.
