India, once the largest buyer of discounted Russian crude following Moscow’s 2022 invasion of Ukraine, is preparing to drastically cut its oil imports from Russia after new U.S. sanctions targeted key Russian energy producers, Rosneft and Lukoil. The sanctions, announced by President Donald Trump this week, mark Washington’s first major Ukraine-related measures of his second term and aim to choke off Moscow’s oil revenue.
In the first nine months of 2025, India imported roughly 1.7 million barrels of Russian oil per day, making it the top global buyer of Moscow’s seaborne crude. However, the new sanctions have created compliance risks for Indian refiners and complicated New Delhi’s trade relations with Washington, which has repeatedly warned India over its growing energy ties with Russia.
Why It Matters
The shift could reshape global oil flows and strain India’s refining sector, which has benefited from cheap Russian crude. It also underscores rising friction between Washington and New Delhi at a delicate moment in U.S.-India relations. Russian oil imports have become a sticking point in broader trade talks, with half of Trump’s 50% tariffs on Indian goods reportedly tied to the issue.
For Moscow, losing India as a major buyer would be a significant blow. Indian purchases have helped offset lost European demand since the Ukraine war began, sustaining Russian oil revenues despite Western price caps.
Reliance Industries, India’s largest private refiner and top buyer of Russian crude, is reportedly planning to “reduce or completely halt” imports. A Reliance spokesperson confirmed the company is “fully aligned” with Indian government guidelines on recalibrating oil sourcing.
State-owned refiners such as Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum, and Mangalore Refinery are reviewing trade documentation to ensure that no post-sanctions cargoes are directly linked to Rosneft or Lukoil. Though these refiners typically buy through intermediaries, they face mounting scrutiny from both Washington and domestic regulators.
India’s oil ministry has yet to comment officially, but sources say refiners have until November 21 to wind down transactions, per the U.S. Treasury’s sanctions deadline. Nayara Energy, partly owned by Rosneft, may also face complications as its imports are directly tied to the sanctioned firm.
What’s Next
Analysts expect a “massive cut” in Russian oil shipments to India within weeks, though not an immediate halt. Some pre-contracted cargoes are still expected before the November 21 cutoff. Refiners are now exploring alternatives from the Middle East and Africa to bridge the shortfall.
For Washington, India’s compliance will be a key test of its commitment to U.S. sanctions enforcement. For New Delhi, the challenge lies in balancing strategic autonomy preserving cheap energy access with avoiding secondary sanctions that could disrupt trade and financial flows.
With information from Reuters.
