India is preparing to cut off crude oil imports from Russia. The decision comes after the US announced new sanctions against Russia, which will take full effect on November 21.
The move marks a major shift in India's stance, which has been Russia's largest oil buyer since the outbreak of the Ukraine conflict.
According to data research firm Kpler, major Indian refineries will stop buying oil from Russia to carry out US sanctions.
Notably, industrial giant Reliance Industries Limited (RIL) will stop buying oil from Russian state oil company Rosneft.
At the same time, Mangalore Refinery (MRPL) will also cut purchases of Russian oil, while HPCL - Mittal Energy (HMEL) has stopped importing.
These three companies account for more than 50% of total Russian crude oil imports into India, showing that the scale of these purchases is very significant.
The new US sanctions were announced on October 22, targeting two Russian energy giants, Rosneft and Lukoil.
The US Treasury Department has given companies around the world until November 21 to end all transactions with the two groups. If they do not, companies could face heavy penalties such as fines, blacklists or trade restrictions.
This has forced major Indian private oil refiners, which have extensive international business ties, to accept.
Kpler analyst Sumit Ratoliya predicts that imports will fall sharply in December. However, media reports also suggest that supply could gradually recover by early 2026 through new intermediaries and replacement transport routes, in order to avoid sanctions.
Since 2022, India, the world's third-largest oil importer, has taken advantage of Russia's discounted oil sources. Indian government data shows that the country has purchased about $1.40 billion worth of Russian oil since 2022.
Cheap oil, after being refined into gasoline and diesel by companies like Reliance, has been sold to both domestic and international markets, helping India curb inflation.
Now, when forced to switch to more expensive alternative sources from the Middle East or the US itself, the increased cost of refining oil may directly affect domestic retail gasoline prices.
This move also comes in the context of US President Donald Trump continuously putting pressure. On October 22, Mr. Trump announced for the fifth time that Indian Prime Minister Modi had pledged to him to stop buying Russian oil. Previously, in August, Mr. Trump also imposed an additional 25% of tariffs on India for purchasing Russian oil, raising the total tax rate to 50%.
