India’s imports of Russian crude oil are expected to fall sharply in December, hitting their lowest levels in at least three years, as refiners adjust operations to comply with increasingly stringent Western sanctions, industry sources report. The decline comes after multi-month highs in November, driven by last-minute stockpiling ahead of new U.S., EU, and U.K. regulations targeting Russian oil producers.
Western Sanctions Drive Change in Indian Oil Buying
The United States, European Union, and the United Kingdom have intensified sanctions on Moscow following Russia’s ongoing war in Ukraine. The latest U.S. measures directly target major Russian producers, including Rosneft and Lukoil, placing restrictions on financial transactions and deliveries.
Indian refiners had until November 21, 2025, to wind down dealings with these sanctioned entities. Meanwhile, the European Union has imposed a January 21, 2026 deadline: any fuel derived from refineries handling Russian crude within 60 days of the bill of lading will be rejected. These measures have forced Indian oil companies to reassess their sourcing strategies to avoid potential violations.
Bank Scrutiny Forces Caution Among Refiners
U.S. sanctions have also intensified banking oversight, making Indian state refiners “extremely cautious,” according to industry sources. Preliminary plans suggest India will receive around 600,000 to 650,000 barrels per day (bpd) of Russian crude in December. This includes imports by major refiners such as Indian Oil Corporation (IOC), Nayara Energy, and deliveries of November-loading cargoes for Reliance Industries.
In comparison, India imported roughly 1.87 million bpd of Russian crude in November, up from 1.65 million bpd in October, according to provisional data from Kpler. The spike reflects stockpiling ahead of sanctions deadlines and the EU’s planned requirement for non-Russian crude for oil products destined for its market from 2026 onward.
Most Indian Refiners Halt Russian Oil Purchases
Several Indian refiners have curtailed Russian oil purchases to comply with sanctions. Companies including Mangalore Refinery and Petrochemicals Ltd (MRPL), Hindustan Petroleum Corporation (HPCL), and HPCL-Mittal Energy Ltd have largely stopped buying from Russian sources. State-owned refiners such as IOC and Bharat Petroleum Corporation Limited (BPCL) have stated that they will procure only from non-sanctioned Russian entities.
Nayara Energy, partially owned by Rosneft, continues to process Russian crude exclusively, as other suppliers have pulled back following EU and U.K. sanctions. Reliance Industries Ltd., operator of the world’s largest refining complex, has indicated that it will process precommitted Russian cargoes loaded before November 20 at its domestic refineries while its export-focused facility remains unaffected.
U.S. Oil Gains Market Share in India
As Indian refiners reduce Russian oil purchases, U.S. crude imports have surged. October 2025 saw U.S. oil reach its highest share in Indian imports since June 2024, as refiners took advantage of price arbitrage opportunities. Additionally, India faces pressure from Washington to increase U.S. energy purchases following the doubling of tariffs on Indian imports to 50%, partly in response to New Delhi’s purchases of Russian crude.
Outlook for December and Beyond
The December drop in Russian oil imports marks a significant shift for India’s energy sector. Refiners are actively seeking alternative suppliers and adjusting processing strategies to remain compliant with international sanctions while ensuring domestic fuel supply. Analysts predict that this cautious approach will continue into 2026, potentially reshaping India’s crude import patterns and trade relations.
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