India’s purchases of Russian crude oil are set for a steep decline this month, falling to their lowest level in at least three years, according to trade trackers and refinery executives.
The shift marks a sharp turn from the surge seen in November, as domestic refiners move to avoid falling foul of tightened Western sanctions linked to the war in Ukraine, Reuters reported.
Fresh measures imposed by the United States, the European Union and Britain have specifically targeted major Russian producers Rosneft and Lukoil, prompting banks and intermediaries to scrutinise transactions more closely.
The report described the mood among state-owned refiners as “extremely cautious”, noting that December volumes may come in at roughly 600,000–650,000 barrels per day.
Imports in November were significantly higher. Provisional estimates from Kpler show India expected to receive around 1.87 million barrels per day of Russian crude that month, compared with about 1.65 million barrels per day in October.
A trader familiar with regional cargo flows said Russian shipments climbed as refineries tried to fill the stocks prior to the US sanctions deadline.
Most public-sector refiners, including HPCL, HPCL-Mittal Energy and Mangalore Refinery and Petrochemicals Ltd, have now paused spot purchases. Indian Oil Corp and Bharat Petroleum have confirmed they will only procure from non-sanctioned suppliers.
Other refiners are adapting differently. Nayara Energy, partly owned by Rosneft, is processing only Russian grades, while Reliance Industries said it will refine only “precommitted” cargoes loaded before the October cut-off and divert any later shipments to domestic use.
At the same time, India is sourcing more crude from the United States, helped by pricing shifts and strategic pressure, particularly after Washington doubled tariffs on certain Indian imports to 50 per cent.
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