NEW DELHI – Indian refiners are preparing to drastically reduce imports of Russian crude oil following new U.S. sanctions targeting Russia’s two largest oil producers, Lukoil and Rosneft, industry sources confirmed Thursday. The move is expected to ease trade tensions with Washington, which has imposed steep tariffs on Indian exports in part due to its continued oil trade with Moscow.
India, the largest buyer of discounted Russian seaborne crude since the 2022 Ukraine invasion, imported about 1.7 million barrels per day in the first nine months of 2025. The U.S. sanctions, part of President Donald Trump’s renewed pressure campaign against Russia, give global companies until November 21 to wind down dealings with the sanctioned firms.
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Reliance Industries, India’s biggest private refiner and a top buyer of Russian oil, plans to curtail or halt imports from Rosneft under its long-term deal, aligning with Government of India guidelines. State-run refiners — Indian Oil Corp, Bharat Petroleum, and Hindustan Petroleum — are also reviewing trade documents to ensure compliance with sanctions. “There will be a massive cut,” said one refinery source. “We don’t expect it to go to zero immediately, but volumes will sharply fall.”
Rosneft and Lukoil account for about 60% of India’s Russian oil imports, according to ICRA Ltd. While India can replace Russian barrels with supplies from the Middle East and other regions, analysts warn the shift will slightly raise the country’s import bill by up to 2%. Reliance has already begun sourcing more crude from the Middle East and Brazil to offset potential losses. Nayara Energy, partly owned by Rosneft, may also be affected.
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Industry experts note that the pace of reduction depends heavily on whether Indian banks are willing to process payments related to Russian oil. “If banks clear payments, we will buy. Otherwise, intake will be zero,” an Indian refinery official said. Brent crude prices rose nearly 5% on Thursday following the announcement, reflecting growing uncertainty in global oil markets.
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