India's State-owned Refineries Cut Crude Oil Purchases From Russia By Half
- 13.10.2025, 21:28
The decline in Russian oil purchases comes amid tightening economic measures by the US.
India's state-owned refineries cut purchases of Russian oil by more than 45% from June through September, The Moscow Times reported, citing Kpler. According to the company's analyst Navin Das, Russian oil supplies to India's state-owned refineries amounted to about 600,000 bpd in September, while in June the figure reached 1.1 million barrels. In an interview with The Hindu, Das called the reduction "quite substantial" and said it reflected a change in the structure of imports amid political pressure and rising freight costs.
The decline in Russian oil purchases comes amid tightening economic measures by the United States, the publication noted. In August, President Donald Trump imposed additional 25 percent duties against India for buying Russian oil. Washington requires New Delhi to reduce trade with Moscow, calling it a condition for a favorable bilateral trade deal.
Despite this, India continues to buy Russian crude at a discount. While state-owned refineries are cutting supplies, private refiners - primarily Reliance Industries and Nayara Energy (controlled by Rosneft) - are increasing volumes. According to Kpler, Reliance is importing about 850,000 bpd, double the January figure, while Nayara is importing up to 400,000 bpd, the highest this year.
Total Russian oil imports to India have stabilized at 1.6 million bpd, although in June they reached a record 2 million bpd. Kpler forecast a further decline in October.
Das noted that the discount on Urals crude has shrunk sharply, from $6 per barrel in August to about $0.8 now. According to him, this is due to the growth of freight costs and the fact that "the market has realized - India is buying Russian oil more actively than expected."
With geopolitical instability, OPEC+ agreement to increase production by 137 thousand barrels per day from November is expected to help stabilize prices and expand supply in the global market. India, meanwhile, has seen an increase in Iraqi oil purchases with stable supplies from Saudi Arabia, The Hindu wrote.
Das said there were concerns about the sustainability of exports after Ukrainian drone attacks on Russian oil infrastructure in September. "We can assume that there has been some decline in Russian production. This will lead to higher prices and lower discounts, hence lower volumes of Russian crude available to India," he said.