News and Articles

• Many Indian refiners have paused new Russian oil orders following recent US sanctions, seeking clarity and turning to the spot market for alternatives.
• Indian Oil Corporation stated it will continue purchasing Russian oil, but only from non-sanctioned entities and in full compliance with the price cap.
• Several refiners, including Indian Oil, Reliance, and Mangalore Refinery, have issued tenders or increased spot purchases to secure non-Russian supplies.
• Bharat Petroleum plans a spot tender to replace Russian oil, intending to substitute half its usual volume with non-Russian crude like Iraqi grades or more expensive US WTI.
• Some refiners have cancelled previous orders linked to sanctioned traders and are holding new orders until they can source from approved, non-sanctioned entities.

In the wake of recent US sanctions on Russia's leading crude exporters, many Indian refiners have reportedly paused new orders for Russian oil as they seek clarity from the government and their suppliers. According to industry sources, some companies have turned to the spot market to secure alternative supplies.

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However, Indian Oil Corporation stated on October 28, 2025, that it would continue purchasing Russian oil provided the transactions comply with sanctions and involve non-sanctioned entities. A company representative affirmed that they would continue such purchases as long as the price cap is respected, and shipping arrangements are secure.

Following the new US measures targeting Russian producers such as Lukoil and Rosneft, Indian refiners have been actively seeking to reduce their Russian oil imports. In response, Indian Oil has issued a tender for oil supplies, while Reliance Industries has increased its spot market purchases. Similarly, Mangalore Refinery and Petrochemicals Ltd. has issued a tender to acquire one to two million barrels of crude.

Another state-run refiner, Bharat Petroleum Corp, plans to issue a spot tender within the next 7 to 10 days to secure December-loading cargoes as a replacement for Russian oil. A company source indicated that they would only consider Russian oil from non-sanctioned entities. The source added that while half of their monthly spot market supply, which largely consists of Russian crude, could continue under these conditions, the remainder would be replaced with non-Russian alternatives. Potential replacements mentioned include Iraq's Basrah Heavy and Basrah Medium crudes, as well as US West Texas Intermediate, though the latter was noted to be approximately USD 3 to USD 3.50 per barrel more expensive than competing grades.

Other refinery sources confirmed that their companies have held off on new orders and have cancelled previous orders linked to sanctioned traders, opting instead to wait for supplies from non-sanctioned sources.