Indian refiners pause new Russian oil orders, await clarity, sources say

Sources told Reuters on Tuesday that Indian refiners had not placed any new orders to purchase Russian oil since the sanctions were implemented, because they awaited clarification from both the government and their suppliers.

Sources who declined to be identified because they were not authorized to speak with the media said that some refiners use the spot market to meet their crude needs.

Sources claim that Indian Oil, a state-run company, has published a tender to purchase oil. Meanwhile Reliance Industries increased its purchases on spot markets.

The European Union (EU), the United Kingdom (UK) and the U.S. imposed a number of sanctions against Russia for its involvement in the war in Ukraine. On Thursday, new U.S. sanction were imposed on the two largest oil companies, Lukoil & Rosneft.

Indian refiners will drastically reduce their imports of Russian crude oil in order to comply with new U.S. sanction, according to reports on Thursday. This could remove a major obstacle to a possible trade agreement with the U.S.

Reliance, India's largest buyer of Russian crude oil, announced last week that it would adhere to the sanctions and maintain its relationship with existing oil suppliers. Also reported that the company plans to stop importing Rosneft oil.

One source said, "We haven't placed any orders for new cargoes yet and we have cancelled some of those that were booked by traders who had links to sanctioned entities."

Third source: "We must ensure that our purchases do not link to sanctioned companies, as banks won't facilitate payments."

Separately, a source stated that his company is waiting to see whether it can obtain cargoes through non-sanctioned entities or traders.

According to the International Energy Agency, India purchased 1.9 million barrels of Russian oil per day during the first nine months 2025. This is 40% of Russia's total imports.

According to trade sources, India's Russian crude oil imports between the months of April and September decreased by 8.4% compared to the previous year. This was due to tighter supply and lower discounts, and refiners were seeking oil from the Middle East, the U.S. and other countries.

(source: Reuters)