Chennai: In the past two weeks since the U.S. imposed sanctions on Russian oil refiners, India has seen a shift in its crude oil sourcing. Average imports from Russia dipped slightly to 1.5 million barrels per day (Mbd), down from 1.75 Mbd in 2024. Interestingly, more than a third of these purchases come from “unknown” Indian buyers, according to Kpler data.
Despite these sanctions, the market for Russian crude hasn’t collapsed, though it has changed. While current imports are below the 2024 average, the drop of only 250,000 barrels daily is modest. This suggests that Indian buyers are still keen on Russian crude, albeit through less transparent channels.
The term “unknown buyers” emerged in November, but their presence grew significantly in December. In fact, they accounted for over a third of all Russian crude purchases last month, while the share of other buyers declined.
Key players like Indian Oil Corporation and Bharat Petroleum continue to import Russian crude. However, Mangalore Refinery and HPCL have reduced their purchases. Kpler anticipates that Reliance’s intake of Russian oil will also drop, especially as the Jamnagar facility gradually scales back imports. This doesn’t necessarily indicate a long-term trend toward higher imports; instead, it reflects adjustments to the evolving sanctions landscape.
Nayara Energy, which has ties to Rosneft, continues to rely on Russian supply. Meanwhile, Chinese imports of Russian oil have fallen, and Turkey is also seeking new sources.
Interestingly, Ural oil from Russia, traded in India’s western coast, has seen its discount widen to $6.50 per barrel. This is more than tripled from the $2 per barrel seen before sanctions.
According to Darius Shahrain, an energy market analyst, “The adaptation of buyer patterns underlines a complex dance in global energy markets. It’s crucial for refiners to stay ahead amidst the shifting dynamics, but the urgency remains to ensure compliance with international regulations.”
As global trade continues to shift in response to sanctions and policies, the oil market will likely keep adapting. This evolving landscape reflects a blend of resilience and reliance on strategic partnerships, even in uncertain times.
For more on the impact of sanctions on global oil markets, see this report from the International Energy Agency.
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Indian Oil Corporation, Bharat Petroleum, Russian refiners, Nayara Energy, Reliance
