Indian Imports of Russian Oil Decline in December; Reliance May Limit the Fall

Indian imports of Russian crude oil continued to decline in December and are likely to hit their lowest level in three years, Bloomberg reported. However, volumes may rise in early 2026 as Reliance Industries Ltd resumes purchases after seeking an extension from the United States.

Deliveries are expected to be around 1.1 million barrels per day (bpd) this month, according to data from Kpler cited by Bloomberg. The figure is higher than earlier government estimates, despite heightened scrutiny following recent backlash from the US over Russian energy purchases.

Indian imports from Russia, particularly crude oil, have declined significantly in recent months as buyers grew wary of increased scrutiny from the US and the European Union. In August, Washington imposed a punitive 25% tariff on India for purchasing energy from Moscow, in addition to reciprocal tariffs, taking the total levy to 50%.

Further, the US and the EU imposed sanctions on two of Russia’s largest refiners, Lukoil and Rosneft. Shipments to India fell as early as July, with some refiners — including state-owned firms such as Indian Oil Corp. and Bharat Petroleum Corp. — scaling back purchases of discounted Russian barrels, the report said.

In late October, India’s largest private refiner, Reliance Industries, halted purchases of Russian crude following Western sanctions on Rosneft and Lukoil, which gave importers a month to wind down transactions with the two producers. Reliance has since begun sourcing barrels from non-blacklisted suppliers. Russian crude processed at Reliance’s Jamnagar refinery in Gujarat is largely used for the domestic market rather than for export, the report said.

Meanwhile, media reports suggest that Indian importers have already begun diversifying their supply chains, with crude imports from West Asia increasing.

According to the report, overall deliveries to India slowed to about 712,000 barrels per day in the second week of December, citing Kpler data. Government officials said daily flows this month are likely to average around 800,000 bpd. Kpler data also showed reduced flows to HPCL-Mittal Energy Ltd., while the Mundra oil terminal and Mangalore Refinery and Petrochemicals Ltd. took no Russian crude deliveries in December — the first such instance since September 2022.

Indian imports of Russian crude could, however, receive some support from Nayara Energy Ltd., which plans to postpone scheduled maintenance at its Vadinar refinery, potentially allowing for higher Russian oil purchases, the Bloomberg report said.