US Sanctions Push Indian Refiners Away From Russian Crude
By Charles Kennedy of OilPrice.com
All but two Indian refiners have skipped placing orders for Russian crude for December after the U.S. sanctioned Russia’s top oil producers, Rosneft and Lukoil, sources with knowledge of the purchases told Bloomberg on Tuesday.
India’s refiners, which have come to rely on cheap Russian crude in the past three years, have withdrawn from the December purchasing window which typically closes by November 10.
Five large refiners, including state-owned Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Mangalore Refinery and Petrochemicals Limited (MRPL), and private firms Reliance Industries Ltd and HPCL-Mittal Energy Ltd, have not requested any Russian crude for December.
Combined, these five firms have imported two-thirds of all Russian crude oil into India year to date, according to Kpler data cited by Bloomberg.
Only India’s biggest state-held refiner, Indian Oil Corporation (IOC), and Nayara Energy, in which Rosneft holds 49%, have purchased crude from Russia for December, per Bloomberg’s sources.
At the end of October, following the U.S. sanctions on Russia, IOC acquired five December-arriving cargoes of Russian crude from non-sanctioned sellers.
IOC has bought about 3.5 million barrels of Russia’s ESPO crude at about the same price as the Dubai quotes for delivery at an eastern Indian port in December, a trade sources told Reuters, without naming the sellers of the Russian oil.
IOC has vowed that it would fully comply with international sanctions related to crude oil imports from Russia.
IOC is also looking to buy 24 million barrels of crude oil from the Americas in the first quarter of next year to replace lost Russian supply.
Indian refiners are pivoting away from Russian crude and are buying additional barrels from the Middle East and the Americas to offset what is expected to be a steep decline in Russian loadings in December and January.
Tyler Durden
Wed, 11/12/2025 – 14:20