Indian refiners are preparing to reduce Russian crude imports as the United States enforces tougher sanctions. A new law signed by President Donald Trump allows tariffs up to 100% on countries importing Russian oil. This has created concern for India, the world’s third largest crude buyer, which has relied heavily on discounted Russian supplies.
Imports from Russia fell to 1.9 million barrels per day in September, equal to 35% of India’s total, the lowest share since April. Refiners are now weighing alternatives despite higher costs and supply risks. Officials suggest India may limit Russian crude to 20% to 30% of total imports to reduce exposure.
Russian Urals crude was priced near 133 dollars per barrel, while Middle Eastern grades such as Oman and Murban cost several dollars more. Replacing Russian volumes is difficult because supplies from Venezuela and Iran are much smaller. Middle East exporters also face constraints due to flows through the Strait of Hormuz.
India’s domestic demand is rising with new refinery capacity in Rajasthan and expansions elsewhere, pushing purchases toward a record 5.4 million barrels per day. Refiners are exploring West Asian grades despite higher costs and will continue negotiations with Washington to avoid punitive tariffs. India is also watching whether sanctions are applied equally to other major Russian energy buyers like China.
