India to Cut Direct Russian Crude Imports Amid New US Sanctions

India is set to decrease its direct imports of Russian crude oil from late November in response to new United States sanctions that will target major Russian energy companies Rosneft and Lukoil starting November 21. Analysts predict that Indian refiners, which process over half of the country's Russian crude for petrol and diesel, will adhere to these sanctions. Maritime intelligence firm Kpler forecasts a substantial decline in Russian crude deliveries to India in December, with a slow recovery expected by early 2026 via alternative trading mechanisms. Key Indian refiners like Reliance Industries Ltd, Mangalore Refinery and Petrochemicals Ltd, and HPCL-Mittal Energy Ltd (a joint venture involving Hindustan Petroleum Corporation Ltd) have reportedly planned to cease their direct Russian crude purchases. These three entities were responsible for more than half of India's 1.8 million barrels per day of Russian crude imports in the first half of 2025. Nayara Energy's refinery, partly owned by Rosneft, is anticipated to continue Russian crude imports. To compensate for the reduced Russian supply, Indian refiners are increasing their procurement from sources such as the Middle East, Latin America, West Africa, Canada, and the United States, with US crude imports to India reaching record levels recently. The situation highlights India's efforts to balance its energy needs with geopolitical considerations.

Impact: This news could lead to increased volatility in oil prices and impact the profit margins of Indian refiners due to changes in crude sourcing costs and logistics. Companies that successfully diversify their supply chains may see a competitive advantage. The overall energy security of India could be affected in the short term. Rating: 7/10

Difficult terms: Crude imports: The process of bringing crude oil into a country from another country. Sanctions: Penalties or restrictions imposed by one country on another, often for political or economic reasons. Refiners: Facilities that process crude oil into refined petroleum products like petrol, diesel, and jet fuel. Intermediaries: Companies or individuals that act as a go-between in transactions, in this case, facilitating oil purchases. Joint venture: A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task. Barrels per day (bpd): A standard unit of measuring the volume of crude oil produced or consumed daily.