Indian Refineries Increase Purchases of Russian Oil Due to Discounts
Four of the seven leading oil refineries in India are actively ramping up their purchases of Russian crude oil, taking advantage of significant discounts on “non-sanctioned” barrels. Among them are state-owned companies Indian Oil Corp. and Bharat Petroleum Corp., which have acquired about 10 batches of Russian oil, including Urals grade, in recent days. At the same time, Hindustan Petroleum Corp. is seeking new supplies for delivery in January.
This is reported by AgroReview
Key Market Players and the Role of Reliance Industries
Nayara Energy is also continuing its purchases, having not ceased importing Russian oil even after being placed on the European Union’s blacklist. Collectively, these four companies accounted for over 60% of India’s total oil imports in 2025, according to analytics from Kpler.
Meanwhile, the previously largest buyer—Reliance Industries Ltd.—is currently refraining from transactions involving Russian oil, even within the framework of a long-term contract with Rosneft PJSC for the supply of up to 500,000 barrels per day. Sources indicate that the conglomerate is avoiding the risk of violating U.S. and EU sanctions.
Market Changes and Geopolitical Impact
India is attempting to maintain a balance between the economic benefits of cheap Russian oil and the need to demonstrate an independent foreign policy, without provoking the U.S. and European Union countries.
“India has been trying to maintain a delicate balance for several months: to keep access to cheap Russian oil, demonstrate geopolitical independence, and at the same time not irritate either Washington or Brussels.”
It is expected that in 2025, India’s imports of Russian oil will decrease due to the expansion of sanctions pressure, which has also affected large companies like Rosneft and Lukoil PJSC. Despite this, purchases will continue, albeit at lower levels. According to estimates from traders in India, Russian oil is currently priced at approximately $40–45 per barrel.
In June 2025, imports from Russia reached over 2 million barrels per day—this was the peak. However, in December, the volume is expected to be around 1.3 million barrels per day, and it may decrease even further in January.
It remains unclear whether such volumes will satisfy the Trump administration, which has repeatedly urged India to stop financing military operations in Russia and sever energy ties with Moscow. Currently, the long-awaited trade agreement between New Delhi and Washington remains unsigned.