Media: Deep discounts drive Indian buyers to Russian oil

Four of India’s seven largest refiners are actively seeking Russian crude as deep discounts lure buyers toward non-sanctioned barrels, even as Reliance Industries Ltd., the country’s former top purchaser, abstains.

State-owned Indian Oil Corp. and Bharat Petroleum Corp. have acquired around ten cargoes of non-sanctioned Russian crude, including Urals, over the past few days, according to sources familiar with the purchases. Hindustan Petroleum Corp. is reportedly looking for deliveries in January. Sources requested anonymity as they were not authorized to speak publicly, Bloomberg reports.

Including Nayara Energy — which continues to take Russian crude despite being blacklisted by Europe — these four refiners account for just over 60% of India’s oil imports this year, according to analytics firm Kpler. The companies did not immediately respond to requests for comment.

Reliance, by contrast, is avoiding Russian crude, even under its term contract with Rosneft PJSC, equivalent to 500,000 barrels per day. Sources cited the conglomerate’s caution over potential conflicts with US or European sanctions.

India has long navigated a delicate balancing act: securing cheap Russian oil while asserting geopolitical independence, without provoking Washington or Brussels. Russian crude is currently trading at around $40–$45 a barrel. India’s imports peaked at over 2 million barrels per day in June but are expected to decline to 1.3 million in December and fall further in January, even as earlier cargoes booked before sanctions are delivered.

Reliance is set to receive its last Urals shipment on December 17 via the tanker Aqua Titan. “While other refiners can partially offset the decline, they are unlikely to fully replace the volumes Reliance was able to absorb at its peak,” said Sumit Ritolia, lead analyst at Kpler. He estimates India’s Russian crude imports will now range between 1 and 1.2 million barrels per day.

Smaller processors, including Mangalore Refinery & Petrochemicals Ltd. and HPCL-Mittal Energy Ltd., have ceased Russian crude purchases entirely.

By Vafa Guliyeva