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- India’s Russian Oil Imports To Hit Three Year Low In December Amid US EU Sanctions
New Delhi40 minutes ago
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India’s Russian oil imports may fall to three-year low in December. Currently, India is buying about 18 lakh barrels per day (bpd) of crude oil from Russia. It is estimated to be 6-6.5 lakh bpd in December.
According to media reports, Indian refinery companies have started sharply reducing the purchase of Russian crude oil so as not to violate American, European and British sanctions.
Refiners are now looking for alternative sources of Russian oil. The main reason for not buying oil from Russia is the latest sanctions imposed on Russia by America and European Union.
Strictness after US-EU sanctions
In the latest US sanctions, Russia’s two big oil companies Rosneft and Lukoil have been tightened. Buyers were asked to stop transactions with these companies by November 21. Whereas the European Union has set the last date as 21 January 2026.
After this, the fuel made by any refinery by processing Russian crude more than 60 days ago will not be able to be sold in Europe.
Indian banks increased investigation
Due to these restrictions, the scrutiny of transactions taking place from America and Europe in Indian banks has also become stricter. Due to this, Indian government refiners have also become alert.
Most Indian refiners have stopped buying Russian oil. Mangalore Refinery and Petrochemicals (MRPL), Hindustan Petroleum (HPCL) and HPCL-Mittal Energy are no longer sourcing oil from Russia.
Indian Oil and Bharat Petroleum have said they will buy only from Russian suppliers who are not on the banned list. Nayara Energy, in which Rosneft has a stake, is currently processing only Russian oil.
Complete story of India and Russian oil import in 4 questions and answers
1. Why did India increase the purchase of Russian oil?
Sanctions were imposed on Russia after the Ukraine war started in 2022. Russia started selling its oil very cheap. Earlier India did not buy oil from Russia, but now Russian crude started getting cheaper by 20-30 dollars per barrel. Indian refinery companies (Reliance, IOC, Nayara, HPCL) saw the opportunity and bought a lot of oil.
In 2023-2025, India will start buying 17-19 lakh barrels of Russian crude every day. Due to this, Indian companies saved crores of rupees.
2. What sanctions did America and European Union impose on Russia?
- First of all, direct import ban of Russian crude.
- Then petrol and diesel made from Russian crude will also not be sold in the EU from January 2026.
- Direct sanctions on Russia’s two largest companies Rosneft and Lukoil in October 2025. Companies doing business in America cannot make any deal with them, otherwise they themselves may get caught in sanctions.
- Strict scrutiny of bank transactions started. If the payment is going to Rosneft or Lukoil, the bank will stop the payment.
3. What was the impact on India?
- America also imposed 50% tariff on India because we are buying Russian oil.
- Reliance has huge exports to Europe. If it uses Russian crude, Europe will not buy its produced petrol and diesel.
- Reliance has business in America, if sanction is imposed there then accounts can be frozen.
- Banks are scared that if they make payment to the Russian company, their account in America may be frozen. Therefore, banks started checking every transaction very closely.
- IOC, HPCL, Mangalore Refinery stopped buying Russian oil.
4. What is happening now and what will happen next?
- In November, India bought a lot of Russian oil (18.7 lakh barrels per day) because the stock needed to be replenished.
- Only 6-6.5 lakh barrels will arrive daily in December, the lowest in 3 years.
- Reliance stopped supplying Russian crude to its SEZ refinery from November 20. From December 1, fuel will be made there only from non-Russian oil.
- Companies are now taking oil from alternative Saudi, Iraq, UAE, America and African countries.
- Russian oil was cheap, now we will have to buy expensive oil. There may be some impact on the price of petrol and diesel, but the government will control it through subsidy or other means.
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