LNew Delhi, October 24, 2025 — In response to recent U.S. sanctions targeting Russian oil majors Rosneft and Lukoil, Indian refiners are strategically diversifying their crude oil imports. The U.S. sanctions, announced on October 22, prohibit American entities from engaging with these companies and warn non-U.S. firms of potential secondary penalties, with a deadline of November 21 to wind down all transactions .
Currently, Russia supplies approximately one-third of India’s crude oil needs, equating to about 1.7 million barrels per day, with 1.2 million barrels sourced from Rosneft and Lukoil . Major Indian refiners, including Reliance Industries and Nayara Energy, have been significant recipients of this supply.
To mitigate the impact of these sanctions, Indian refiners are increasing imports from alternative sources such as the Middle East, Latin America, West Africa, Canada, and the United States. However, analysts caution that this shift may lead to higher freight costs and a potential increase in India’s annual oil import bill by nearly 2% .
Reliance Industries, which operates the world’s largest refining complex in Jamnagar, Gujarat, has a long-term contract with Rosneft to purchase nearly 500,000 barrels of crude oil per day. While the company has not explicitly confirmed ending its contract with Rosneft, it stated that supply arrangements would adapt to evolving regulatory conditions .
Despite the sanctions, analysts believe that complete disengagement from Russian oil is unlikely, given the profitability of discounted Russian grades and India’s refining flexibility. However, refiners may increasingly rely on intermediaries to maintain supply lines while navigating the new regulatory landscape .
