India is expected to stop buying discounted Russian oil after the imposition of fresh US sanctions on two top producers, Rosneft and Lukoil, and instead increase its purchases of other goods from long-time ally Moscow.
Many Indian refiners have paused new orders of Russian oil since Washington sanctioned the two Russian crude exporters last week, with buyers turning to the spot market for alternatives, according to a Reuters report.
India, along with China, has been among the top buyers of Russian oil since the outbreak of the Russia-Ukraine war, a decision New Delhi has said is important for its energy security. It imports around 85 per cent of its crude oil requirement amid growing domestic demand.
Along with the earlier blacklisting of two other major Russian producers, Surgutneftgas PAO and Gazprom Neft, Indian oil processors are trying to understand how much oil they can buy from non-sanctioned entities and at what price, according to reports.
Together, the four sanctioned firms accounted for more than 80 per cent of India’s Russian oil imports in 2024.
According to the International Energy Agency, Russian oil supplies accounted for around 40 per cent of India’s imports during the first nine months of this year.
