Crude Oil: India energy market could once again see a major shift. Following the new US sanctions imposed on Russia, Indian refineries are now exploring alternative sources for oil purchases. Preparations are underway to increase crude oil purchases from regions such as West Asia, Latin America, and the United States.
Imports from Russia will decrease, dependence on West Asia will increase
Russia accounts for approximately one-third of India’s total crude oil imports. In 2025, India purchased an average of 1.7 million barrels of oil per day from Russia, of which approximately 1.2 million barrels came from Rosneft and LukOil. Now that these companies have been sanctioned, many private refineries in India, such as Reliance Industries Limited and Nayara Energy, will have to shift their sources.
Import Bill Increases, But Supplies Remain Stable
Experts say that India has previously received significant relief from cheap crude oil from Russia. However, purchasing oil from alternative countries will result in slightly higher prices. This may increase India’s oil import bill slightly, but India’s energy security will remain intact.
The Widespread Impact of US Sanctions
The US Treasury Department has clarified that all existing transactions involving Rosneft and LukOil must be completed by November 21, 2025. This deadline is crucial for India, as refineries must finalize new supply contracts by then. This move by the US could increase volatility in the global oil market, as Russia is one of the world’s largest oil producers.
A Strategic Move for India
India’s energy policy has always been pragmatic and multifaceted. Despite cheap oil supplies from Russia, India has kept its options open. Now that US sanctions have impacted Russian oil exports, India has reliable alternatives like West Asia and the US. This move will not only diversify India’s energy sources but also reduce its dependence on any single country.
The shift in the focus of India’s refineries following the US sanctions is a necessary step. Increasing oil purchases from West Asia and other countries will not only secure supplies but also strengthen India’s position in the global market. Although a slight increase in the import bill is possible, this is considered a positive step for the country’s energy security and stability.
Disclaimer: This article is based on publicly available information and expert opinions. The information provided is for general understanding purposes only. Please seek expert advice before making any investment or business decisions.
