India returns to Russian oil: some refineries increase purchases, while Reliance refuses due to sanctions risks
10 December 16:39
India is once again increasing its purchases of Russian oil, but is doing so more cautiously than in previous months. Four of the country’s seven largest refiners have purchased new shipments of Russian crude oil that is not subject to sanctions. This indicates that the market is looking for favorable offers, despite the increasingly stringent Western restrictions.
Bloomberg writes about this, "Komersant Ukrainian" reports.
Who is buying and what exactly
According to Bloomberg, state-owned Indian Oil and Bharat Petroleum have recently purchased about ten shipments of Russian oil, including Urals, a key grade that is traditionally offered at a significant discount. Hindustan Petroleum, meanwhile, is studying the terms of supply for the beginning of next year.
Kpler analysts estimate that these four refineries together accounted for more than 60% of India’s oil imports in 2025.
Who is distancing themselves from Russian oil
Despite the movement of part of the market towards cheaper supplies, the country’s largest player, Reliance Industries, is moving away from Russian contracts. The company avoids even the oil provided for in a long-term agreement with Rosneft for half a million barrels per day. The reason is the risk of being sanctioned by the US or EU.
Smaller refiners, including Mangalore Refinery and HPCL-Mittal Energy, have also stopped any purchases.
India’s strategic balance
Since the beginning of the war, India has been one of Moscow’s key customers, buying Russian oil at discounted prices. However, the new Western sanctions against Rosneft and Lukoil are changing this balance.
Imports are expected to fall to 1.3 million barrels per day in December, and even lower in January. For comparison, in June, supplies exceeded 2 million barrels per day.
The price of the issue
Traders say that the current price of Russian oil is $40-45 per barrel, which is significantly lower than world prices. It is these discounts that encourage state-owned companies to return to purchases, despite political risks.
Increasing pressure on Moscow
Russia, which is loading tankers at a record pace, is facing a market glut: some cargo is simply accumulating at sea. This puts additional pressure on prices and limits the Kremlin’s ability to finance the war in Ukraine.
