Archive · 21 Sep 2026
Indian Refiners Weigh Cutting Russian Crude Purchases Amid US Sanctions
Indian oil companies buy a lot of crude oil from Russia because it has helped them control costs.
A new US law could allow President Donald Trump to put extra tariffs on countries that buy Russian energy.
Because of this risk, Indian refiners are considering buying less Russian oil for November.
Russia is still expected to provide more than 35% of India’s crude imports in September.
Finding replacement supplies may be difficult because other types of oil cost more.
India’s oil needs may also grow as refineries expand.
Global supplies are uncertain while Persian Gulf producers work to restore shipments through the Strait of Hormuz.
Indian refiners will decide what to buy next while watching whether the US applies the measures broadly.
Indian refiners are considering reducing Russian crude purchases for November deliveries amid uncertainty over possible US tariffs.
The US legislation allows President Donald Trump to impose tariffs of up to 100% on goods from major buyers of Russian energy.
Russian oil imports are expected to average about 1.9 million barrels per day in September, representing more than 35% of India’s crude imports.
Replacing Russian supplies could be difficult because alternative crude grades cost more and India’s oil demand is expected to rise.
Refiners and policymakers are closely watching Washington’s approach as November shipment discussions approach.
- Who
- Indian oil refiners, the US government under President Donald Trump, and Russia are central to the development.
- What
- Indian refiners are considering reducing Russian crude purchases because of possible US tariffs on countries buying Russian energy.
- When
- The potential reduction concerns November deliveries; Russian imports are expected to average about 1.9 million barrels per day in September.
- Where
- The issue concerns crude shipments to India and possible measures by Washington affecting major buyers of Russian energy.
- Why
- Refiners are responding to uncertainty over possible sanctions-related tariffs, while India says its Russian oil purchases help secure affordable energy.
India’s Energy-Supply Position
US Sanctions Position
Whether to reduce Russian purchases
India’s Energy-Supply Position
Indian refiners are considering alternatives but face higher costs and the difficulty of replacing large Russian supplies.
US Sanctions Position
The US legislation gives President Donald Trump authority to impose tariffs on countries purchasing Russian crude.
Reason for buying Russian oil
India’s Energy-Supply Position
India maintains that its purchases are driven by the need to secure affordable energy supplies.
US Sanctions Position
The proposed US measures are intended to create economic pressure on major buyers of Russian energy, although implementation depends on US government decisions.
Scope of possible measures
India’s Energy-Supply Position
India is monitoring whether Washington applies the measures broadly to major Russian energy buyers, including China.
US Sanctions Position
The legislation permits tariffs of up to 100%, but the US government has not yet determined how broadly to enforce them.
- Potential tariff
- The US legislation allows tariffs of up to 100% on goods from major buyers of Russian energy.
- Expected September imports
- Russian crude imports are expected to average about 1.9 million barrels per day.
- Share of Indian imports
- The expected September volume would represent more than 35% of India’s total crude imports.
- November buying cycle
- Discussions for November Russian crude shipments are expected to begin soon.
- Russian crude price
- Russian Urals delivered to India was priced at about $133 per barrel last week.
- Alternative supplies
- Middle Eastern grades such as Oman and Murban were more expensive than Russian Urals.
- Demand outlook
- India’s oil demand is expected to rise as a new Rajasthan refinery and existing-facility expansions increase crude requirements.