Indian refiners have not placed new orders for Russian oil since the sanctions were imposed, as they await a clear response from the government and suppliers. Some refiners are using spot markets to meet their crude oil needs.
State–run Indian Oil has issued a tender for the purchase of oil while conglomerate Reliance Industries has boosted purchases from spot markets, according to sources.
The European Union, the UK and the U.S. have imposed a raft of sanctions against Russia over its war in Ukraine, including fresh U.S. sanctions last Thursday that target Russia’s two top oil producers Lukoil and Rosneft. However, Indian refiners could significantly reduce Russian oil imports to comply with new U.S. sanctions–potentially removing a major obstacle to stronger diplomatic ties and new trade deals with the U.S and the EU.
Last week, Reliance, the largest Indian buyer of Russian oil, announced that it would comply with the sanctions while maintaining its relationship with current oil suppliers.
We need to ensure that our purchases are not tied to sanctioned entities, as banks will not process payments.
However, India’s Russian oil imports fell 8.4% between April and September as refiners likely bought more from the Middle East and the U.S. due to lower price discounts and limited supply.
