Indian refiners will stop purchasing crude oil from Russian giants Rosneft and Lukoil when supplied through third-party traders, following new U.S. sanctions. Government officials say it’s difficult to predict when new orders for Russian oil will resume, as payment and compliance risks cloud future procurement strategies.
India’s energy procurement strategy is undergoing a recalibration as Indian refiners halt crude purchases from Rosneft and Lukoil via third-party traders, in response to fresh U.S. sanctions targeting Russia’s top oil exporters. The move, confirmed by a senior government source, reflects growing caution among Indian oil companies amid tightening global compliance norms.
The decision affects Indian Oil Corporation (IOC) and Chennai Petroleum Corporation Ltd (CPCL), both of which have confirmed they will abide by the sanctions and avoid exposure to restricted entities. The sanctions, effective November 21, 2025, have disrupted payment channels and raised legal uncertainties, prompting refiners to pause new Russian oil deals.
Key Highlights:
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Procurement Freeze: Indian refiners to stop buying Rosneft and Lukoil crude via traders
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Sanctions Trigger: U.S. restrictions effective from November 21, 2025
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Refiner Response: IOC and CPCL confirm compliance; no new orders placed
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Uncertain Outlook: Government says it’s difficult to predict when Russian oil orders may resume
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Strategic Shift: Refiners exploring alternative suppliers in the Middle East and U.S.
While Russian crude has been a cost-effective option, the evolving geopolitical landscape is forcing India to reassess its sourcing mix and risk exposure.
Sources: The Hindu BusinessLine, India Today, CNBC TV18