Bloomberg: India Will Almost Completely Abandon Russian Oil
- 23.10.2025, 9:55
After U.S. sanctions.
Russian oil flows to India, which have surged after Russia's invasion of Ukraine, will soon shrink to almost zero. This will happen after the US imposed sanctions against Rosneft and Lukoil.
This is reported by Bloomberg.
Executives of Indian refining companies said that the new restrictions announced by Washington effectively make further deliveries impossible.
"After the blacklisting of major Russian producers, it will be extremely difficult to continue imports," one top manager said on condition of anonymity.
Since the beginning of the year, Russia has accounted for more than 36% of all oil shipments to India, according to analytical firm Kpler. That has irritated President Donald Trump and become a sticking point in trade talks after the imposition of higher tariffs in August.
How India became the biggest buyer of Russian oil
Historically, India hardly ever bought oil from Russia, preferring supplies from Middle Eastern countries. However, that changed in 2022 after Russia invaded Ukraine and the G7 countries imposed a price ceiling of $60 a barrel.
The restriction was meant to reduce the Kremlin's revenues but keep supplies flowing to the global market. India, meanwhile, refused to buy oil from Iran and Venezuela, which are under U.S. sanctions, while Russian oil remained allowed and cheap, leading to a surge in imports.
Washington's decision and an exception for Nayara Energy
The Trump administration's new decision, which had previously avoided serious sanctions against Moscow, has now directly hit major oil flows from Russia. It halts trade at a time when Indian oil producers have just returned to work after Diwali celebrations.
The one exception may be Nayara Energy, an Indian refiner backed by Rosneft. Since EU sanctions came into force in July, it has been operating exclusively on Russian crude.
In the short term, the sanctions mean that orders planned for the coming week will now be placed mainly with other suppliers. Negotiations on Urals shipments have been at a standstill since mid-October, when Trump said Prime Minister Narendra Modi had promised to stop buying Russian crude.
India is looking for new sources of supply
"After these sanctions, Indian oil companies will have to phase out purchases much faster," said Vandana Hari, founder of Singapore-based analyst firm Vanda Insights. India will have an easier time adapting than China, she said, because it did not buy Russian oil until 2022.
India remains the largest buyer of Russian offshore oil, but Washington's new measures have already caused upheaval in the Chinese oil industry as well.
"This is one of the most significant U.S. decisions, but its effect could be weakened by the proliferation of illegal financial schemes," said Rachel Ziemba, an analyst at the Center for a New American Security. "It all depends on how much China and India fear a further escalation of secondary sanctions."
Who will be affected by the new restrictions
State-owned Indian Oil Corp., Bharat Petroleum Corp., Hindustan Petroleum and Mangalore Refinery did not respond to Bloomberg's inquiries. They usually buy oil on the spot market.
Reliance Industries, the largest private player, which has a long-term contract with Rosneft, also did not comment. Representatives of Nayara Energy, which accounts for 16% of Russian oil imports to India this year, did not respond to reporters' request.