Indian refiners have no immediate plans to reduce imports of Russian crude, even as New Delhi resumes trade negotiations with Washington and both sides push for a deal, Bloomberg reports. Purchases are expected to remain active for November and December deliveries, although volumes may be below the peaks seen in recent years, according to people familiar with procurement plans who requested anonymity.
India’s crude flows from Russia eased earlier this year in response to US pressure, including a 50 percent tariff imposed by former President Donald Trump in August and allegations of profiteering by Indian businesses. Ukrainian drone strikes on Russian facilities also temporarily reduced supply to about one million barrels per day, the lowest level in nearly two years based on vessel-tracking data compiled by Bloomberg.
However, with US pressure apparently easing following a recent phone call in which Trump thanked Prime Minister Modi for his support on ending the war in Ukraine, and with ample Urals crude available, Indian refiners are expected to resume higher volumes, the sources said. New Delhi officials are in regular contact with major state and private refiners but have not issued orders to pull back from Russian purchases.
Much of India’s imports come through Reliance Industries, which has a term deal with Rosneft PJSC. Any reduction by Reliance could lower overall volumes, even if other refiners continue sourcing Russian crude. India has generally avoided crude from US-sanctioned regimes such as Iran and Venezuela but, alongside China, has taken advantage of discounted Russian supplies offered under the Group of Seven price cap mechanism.
European efforts to tighten the price cap to $47.60 per barrel this month have gained little traction in India, where buyers see the level as unrealistic given enforcement uncertainties, China’s continued demand, and global Brent crude trading around $66 per barrel. Europe’s plan to ban products made from Russian oil starting in 2026 also leaves questions for India’s exporters, with no clear guidance on allowable thresholds.
Private refiner Nayara Energy, part-owned by Rosneft, is slowly returning to normal operations two months after European sanctions, with approvals for coastal vessels and support from local lender UCO Bank facilitating domestic supply. Nayara now heavily relies on Urals crude to run its 400,000 barrel-a-day unit on India’s west coast.
While refiners remain cautious about overdependence on Russian crude, they continue to explore alternatives. State-run Indian Oil Corp currently purchases roughly one very large crude carrier of Brazilian crude each month to diversify supply.
