India’s refiners have halted new Russian oil purchases after Washington tightened sanctions against Moscow’s top energy companies, triggering payment concerns and leaving buyers waiting for clarity from the government and suppliers, industry sources told Reuters.
The uncertainty has pushed some refiners to tap spot markets to meet short-term crude requirements. State-run Indian Oil Corporation (IOC) has issued a fresh tender for oil, while Reliance Industries, India’s biggest private refiner, has stepped up spot buying, sources said.
Last week, the US imposed new sanctions on Russia’s two largest oil producers, Lukoil and Rosneft, expanding restrictions already in place from the European Union and the UK over the war in Ukraine.
The fresh measures have forced Indian buyers to reassess supply routes and payment mechanisms.
“Several cargoes have been cancelled, especially those linked to traders with exposure to sanctioned entities,” one official involved in crude procurement said. “No one wants to risk payments getting stuck since banks will not process transactions tied to blacklisted companies.”
Another refining executive said companies are waiting to see whether they can source cargoes through non-sanctioned intermediaries. “Until we get more clarity from the government and suppliers, we are not placing fresh orders,” the official said.
Reliance, India’s largest buyer of Russian oil since 2022, said it would comply with all sanctions while maintaining relationships with existing suppliers. The conglomerate has also reportedly stopped importing oil from Rosneft, its main Russian partner.
According to the International Energy Agency data quoted in a Reuters report, India imported about 1.9 million barrels a day of Russian crude in the first nine months of 2025, roughly 40 percent of Russia’s total exports.
But tighter supplies and shrinking discounts have already slowed the flow. Between April and September, India’s Russian oil imports fell 8.4 percent year-on-year, with refiners increasing purchases from the Middle East and the US.
Source: India Today