Trump sanctions fail to stop inflow! Some Indian refiners step up Russian crude oil intake; Indian Oil, Nayara boost purchases

State-run Indian Oil Corp and Rosneft-backed Nayara Energy have increased their purchases of Russian crude in January. This comes even as India’s overall imports from Russia have declined under US sanctions.

Reliance Industries, India’s largest buyer over the past year, along with several other refiners, has not received any supplies this month. This leaves Indian Oil, Nayara and Bharat Petroleum Corporation (BPCL) as the main importers so far, according to ET.




India’s imports of Russian oil averaged 1.18 million barrels per day in the first half of January, down about 30 per cent from both the same period last year and the 2025 average, according to Kpler, a global real-time data and analytics provider. Imports were roughly 3 per cent lower compared with December 2025.

US sanctions have significantly narrowed the buyer pool for Russian crude, restricting shipments to just a few Indian refiners. Indian Oil received about 500,000 barrels per day, accounting for nearly 43 per cent of total Russian crude shipped to India. This was Indian Oil’s highest average intake since May 2024 and 64 per cent higher than its 2025 average.

Nayara Energy, which has become fully reliant on Russian oil since being sanctioned by the European Union last year, was the second-largest buyer in January. Its imports of approximately 471,000 barrels per day—about 40 per cent of Russian volumes shipped to India this month—were the highest in at least two years and 56 per cent above its 2025 average intake. BPCL received around 200,000 barrels per day, slightly above its average of 185,000 barrels in 2025.

Other major refiners, including Hindustan Petroleum Corporation, HPCL-Mittal Energy Ltd, Mangalore Refinery & Petrochemicals Ltd and Reliance Industries, did not receive any Russian cargoes in the first half of January.

Reduced demand from some Indian and Chinese buyers has prompted Russian suppliers to increase discounts on crude. Industry executives said discounts on Russia’s flagship Urals crude for delivery to Indian ports now trades at $5-6 per barrel, up from $2 before US sanctions on Rosneft and Lukoil last October.

Indian Oil has increased its intake this month to take advantage of these discounts.

Indian refiners began recalibrating their strategy on discounted Russian crude after the US criticised India’s purchases last year and threatened additional tariffs. Some refiners moderated imports after an additional 25 per cent tariff took effect in late August on Indian exports to the US.

However, US sanctions on Rosneft and Lukoil have intensified caution among Indian refiners. Most have stopped receiving cargoes from sanctioned suppliers, with the exception of Rosneft-backed Nayara, according to industry executives. Reliance Industries, which has a term deal with Rosneft, has halted shipments from both Rosneft and other Russian suppliers, Kpler data showed.