HYDERABAD, INDIA: In a significant development that could reshape regional energy dynamics, Indian refiners have temporarily halted new orders of Russian crude oil, awaiting clarity on the latest wave of Western sanctions targeting Moscow’s oil giants.
Sources within the oil sector revealed that major refiners, including Indian Oil Corporation (IOC) and Reliance Industries, have paused procurement from Russian suppliers following new U.S. and European restrictions on energy trade with sanctioned Russian entities such as Rosneft and Lukoil. The refiners, industry insiders say, are awaiting official guidance from both the Indian government and banking partners before resuming transactions.
“We’ve chosen not to place new orders for now,” a source close to one refiner said. “There’s too much uncertainty around settlement mechanisms and compliance with banking regulations linked to sanctions.”
The move comes as India’s Russian oil imports have already dipped by over 8% in the last six months — a sharp contrast to the post-Ukraine war surge when Moscow became New Delhi’s top crude supplier due to heavy discounts. However, with tightening sanctions and logistical complications, those discounts have narrowed, making Russian oil less attractive.
Analysts believe the pause reflects New Delhi’s strategic balancing act — maintaining its decades-old energy partnership with Moscow while managing growing economic and diplomatic engagement with Washington. Any prolonged disruption, experts warn, could drive Indian refiners toward Middle Eastern or African oil sources, potentially shifting global energy flows once again.
The next few weeks will be critical as Indian refineries assess alternative supply chains and await policy clarity. If the sanctions continue to disrupt payment routes and insurance mechanisms, this could mark the beginning of a major recalibration in India’s oil sourcing strategy.
This story has been reported by PakTribune. All rights reserved.