Indian oil refining companies have temporarily suspended new orders to purchase Russian oil following sanctions imposed by U.S. President Donald Trump against Russia’s largest oil corporations — Lukoil and Rosneft. Reuters reported this, citing industry sources.
Source: Gazeta.UA
According to the agency, companies are awaiting official clarifications from the Indian government and suppliers to understand how to operate under the new restrictions. For now, some refineries are meeting their needs through the spot market. In particular, the state-owned Indian Oil has announced a tender to purchase oil, while the conglomerate Reliance Industries has increased its spot market purchases.
Last week, Reliance — India’s largest importer of Russian oil — stated it would comply with U.S. sanctions but would seek to maintain relationships with existing suppliers. According to Reuters, the company has already halted imports from Rosneft and canceled several bookings with traders linked to sanctioned entities.
“We have not placed orders for new shipments and have canceled some bookings with traders associated with sanctioned companies,” one of the agency’s sources said. Other market participants noted they are now waiting for confirmation on whether they can receive cargoes from non-sanctioned intermediaries.
“We need to be sure our purchases are not linked to sanctioned entities; otherwise, banks simply won’t process payments,” another source explained.
According to estimates from the International Energy Agency (IEA), India previously purchased about 40% of Russia’s total oil exports, making it one of Moscow’s key clients. However, new sanctions from the U.S., the EU, and the United Kingdom could radically change this balance and reduce India’s dependence on Russian energy supplies.
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