India's Top Oil Companies to Cut Back on Russian Crude Purchases Amid US Sanctions

Strategic Insights -

India's top oil companies, including Reliance and IndianOil Corporation, are set to reduce their purchases of Russian crude oil after the US imposed sanctions on two top Russian oil giants, Rosneft and Lukoil. The news sent global oil prices soaring by 5 per cent to a peak of $66.02 in the last two days. According to Reliance, the company will be fully aligned to the Government of India guidelines and will "recalibrate" its Russian oil imports.

Key Takeaways:

  • Reliance has made a "windfall of about $6 billion" by buying discounted Russian crude for three years, according to Energy Aspects, a London-based consultancy.
  • Reliance has a 10-year contract to buy 500,000 barrels a day of crude from Rosneft, but will likely lose access to financing from US banks after November 21.
  • India's oil imports from Russia have increased from 2-3% to 35-40% in recent years, following the Ukraine war.
  • The EU has placed around 350 shadow fleet ships under sanctions, and will also be hurt by its own measures against buying Liquified Natural Gas (LNG).
  • China's next move is uncertain, but some experts suggest it may stop seaborne oil purchases and continue with pipeline oil.

Statistics:

  • Global oil prices rose by 5% to a peak of $66.02 in the last two days.
  • Reliance has made a "windfall of about $6 billion" by buying discounted Russian crude for three years.
  • India's oil imports from Russia have increased from 2-3% to 35-40% in recent years.
  • The EU has placed around 350 shadow fleet ships under sanctions.
  • The EU is estimated to have bought $5.22 billion worth of LNG in the first half of 2025.

Sources:

  • The Telegraph Online
  • Financial Times
  • Energy Aspects
  • European Commission President Ursula von der Leyen's announcement on X (formerly Twitter)
  • Former US ambassador to India Eric Garcetti's interview
  • Contify.com