Business: India is going to cut direct purchases of crude oil from Russia from the end of November. Due to this, the import of Russian crude oil into India may decrease from the end of November. This step is being taken after new US sanctions on Russia’s two largest oil companies come into effect from November 21. Analysts say Indian refinery companies, which account for more than half of India’s total Russian oil imports, may cut down on direct purchases of Russian oil to comply with the new US sanctions. These include Reliance Industries, Mangalore Refinery and Petrochemicals and HPCL-Mittal Energy.

In fact, America has announced to impose strict economic sanctions on two Russian oil companies Rosneft and Lukoil from November 21. Under this, all American assets and financial transactions of these companies have been banned. Apart from this, secondary sanctions can also be imposed on entities from other countries if they conduct large transactions with them.

There will be a decline in Russian crude oil shipments
Sumit Ritolia, principal research analyst at shipping information firm Kpler, said Russian crude oil shipments will see a decline after November 21 as most Indian refineries will reduce or stop direct purchases from Rosneft and Lukoil in compliance with US sanctions.

Imports will decline sharply in December; emphasis on purchasing from other countries
Russian oil supplies could fall sharply in December, Ritolia said, while the situation could gradually normalize in early 2026 through new trade channels and alternative routes. To compensate for declining Russian imports, Indian refinery companies are increasing purchases from West Asia, Latin America, West Africa, Canada and the US. India imported 5.68 lakh barrels of crude per day from the US in October, the highest since March 2021.

Three companies including Reliance have announced cuts
Reliance has a long-term supply agreement with Rosneft. Mangalore Refinery and Petrochemicals and HPCL-Mittal Energy have also announced halting of future shipments of Russian oil. However, Nayara Energy’s Vadinar Refinery (Gujarat), partly owned by Rosneft, will maintain the existing Russian oil procurement pattern. In the first half of 2025, India imported 18 lakh barrels per day of crude from Russia.