Indian refiners have temporarily halted placing fresh orders for Russian crude oil following the latest round of Western sanctions, as they await further clarity from both the government and suppliers, Reuters reported on Tuesday, citing industry sources.
The refiners, cautious about potential payment and compliance risks, are meeting their near-term crude requirements through spot market purchases, the sources said on condition of anonymity since they are not authorised to speak to the media.
According to the report, state-run Indian Oil Corporation (IOC) has floated a tender to buy crude oil, while Reliance Industries Ltd (RIL)—India’s top private refiner—has increased procurement from the spot market.
The move comes after the U.S., U.K., and European Union imposed new sanctions on Russia’s two biggest oil producers, Lukoil and Rosneft, as part of efforts to tighten restrictions linked to Moscow’s ongoing conflict in Ukraine.
Last week, Reliance Industries said it would comply with all international sanctions while maintaining relationships with existing suppliers. Reuters also reported that the company plans to cease importing oil from Rosneft.
“We have not placed orders yet for fresh cargoes and have cancelled some that were booked from traders linked to sanctioned entities,” one source told Reuters. Another added, “We need to ensure our purchases aren’t connected to sanctioned entities, as banks won’t process payments otherwise.”
Some refiners are exploring whether they can procure cargoes through non-sanctioned intermediaries, sources said.
India has been among the largest buyers of Russian crude since 2022, importing around 1.9 million barrels per day in the first nine months of 2025, which accounted for roughly 40% of Russia’s total exports, according to the International Energy Agency (IEA).
However, India’s imports of Russian oil between April and September 2025 fell 8.4% year-on-year, as discounts narrowed and supply tightened. Refiners have since turned to the Middle East and the U.S. to diversify their crude sourcing.
Disclaimer: This article is based on information reported by Reuters and other publicly available sources.
