Crude from Mideast, US to replace Russian oil for Indian refiners

NEW DELHI: Indian refiners are likely to ramp up crude oil purchases from the Middle East, Latin America and the US to compensate for reduced imports from Russia, following Washington’s sanctions on two major Russian producers, sources and analysts said.

Meanwhile, Reliance Industries Ltd, India’s largest buyer of Russian oil and most impacted by the latest US sanctions, on Friday said it will comply with all applicable restrictions and will adjust its refinery operations to meet compliance requirements.

The US government, on October 22, imposed sanctions on Russia’s two largest crude oil producers, Rosneft and Lukoil, barring all American entities and individuals from conducting business with them. Non-US firms could also face penalties if found dealing with the sanctioned companies or their subsidiaries. The US Treasury Department said all existing transactions involving Rosneft and Lukoil must be wound down by November 21.

Russia currently supplies nearly a third of India’s crude imports, averaging around 1.7 million barrels per day (mbd) in 2025, of which approximately 1.2 mbd came directly from Rosneft and Lukoil. Most of these volumes were bought by private refiners, Reliance Industries Ltd and Nayara Energy, with smaller allocations to state-owned refiners.

Indian refiners are expected to increase procurement from regions including Middle East, Brazil, Latin America, West Africa and Canada. “However, higher freight costs could erode arbitrage opportunities and limit large-scale substitution,” he added.