Indian state refiners review Russian oil imports following US sanctions

Indian state-owned refiners are reviewing documentation related to their Russian oil imports to ensure that no supplies are sourced directly from Rosneft or Lukoil, following the latest round of US sanctions imposed on the two Russian energy giants, a source with direct knowledge of the matter told Reuters on October 23.

US President Donald Trump, on October 22, introduced the first Ukraine-related sanctions against Russia during his second term, targeting the oil companies Rosneft and Lukoil, reflecting Washington’s growing frustration with Russian President Vladimir Putin over the ongoing war in Ukraine.

According to the US Treasury Department, companies have until November 21 to wind down any transactions with the sanctioned Russian oil producers. The department outlined the details in a statement released on Wednesday.

In response, India’s major state refiners — including Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Mangalore Refinery and Petrochemicals — are examining their bills of lading for Russian crude scheduled to arrive after the November deadline to verify that it is not coming directly from Rosneft or Lukoil, the source said.

None of the companies immediately responded to requests for comment.

Trade sources explained that Indian state refiners seldom purchase oil directly from Rosneft or Lukoil, as their imports are typically conducted through intermediaries or trading firms.

India has become the largest importer of discounted Russian seaborne crude since Western countries halted their purchases following Moscow’s invasion of Ukraine in February 2022.

Between January and September this year, India imported about 1.7 million barrels per day of Russian oil, with private refiners Reliance Industries and Nayara Energy accounting for the majority of these volumes.

By Tamilla Hasanova