Why the Majority of Indian Refineries Are Turning Away from Russian Oil: Key Insights from Bloomberg

Recent reports indicate a significant shift in how Indian companies are approaching oil purchases. By the 10th of each month, companies usually confirm orders for the following month. This November, five major Indian firms opted not to buy Russian oil for December. This change is largely a response to Western sanctions targeting major Russian oil companies, including Rosneft and Lukoil.

According to Kpler, five companies made up two-thirds of India’s oil imports from Russia in 2025:

• Reliance Industries Ltd.
• Hindustan Petroleum Corp. Ltd.
• Bharat Petroleum Corp. Ltd.
• Mangalore Refinery and Petrochemicals Ltd.
• HPCL-Mittal Energy Ltd.

Some analysts suggest that these companies are acting cautiously due to ongoing trade talks between India and the U.S. Recently, former President Trump mentioned that both countries are close to finalizing a new deal, which may include India’s commitment to purchase more oil from the U.S.

Interestingly, only two Indian firms, Indian Oil Corp. and Nayara Energy Ltd., have plans to procure Russian oil in December. Indian Oil has arranged to buy around 3.5 million barrels of ESPO crude from suppliers not affected by U.S. sanctions, while Nayara relies heavily on Russian oil due to its connection with Rosneft.

The U.S. is reacting to these changes. Just recently, Trump stated that the U.S. would lower import tariffs on India because of its reduced Russian oil purchases. India stands as the world’s second-largest buyer of Russian oil, following China. The dynamics shifted significantly after Russia’s invasion of Ukraine, which led to a price cap of $60 per barrel set by G7 nations. Before this escalation, India mostly sourced oil from the Middle East.

Despite these changes, India has avoided purchasing oil from sanctioned nations like Iran and Venezuela. As it turns out, Russian oil has become more appealing due to its lower prices, driving a sharp increase in imports since early geopolitical tensions began.

This evolving oil landscape reflects broader economic strategies. With countries adjusting their procurement choices amid sanctions and tariffs, the implications for global energy markets could be profound. As India continues to navigate its relationships with both Russia and the U.S., the future of its energy imports remains uncertain yet critical to its economic health.

For further insights, you can explore detailed statistics at Kpler and check ongoing trends in global oil markets at trusted sources like Reuters.

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India, oil refinery, Russia, sanctions, USA