India ramps up oil purchases from West Asia as US sanctions on Russian oil firms Rosneft and Lukoil take effect from November 21.
Indian refiners pull back from Russian crude, with five of seven saying they will stop taking deliveries after the wind-down period.
Tanker bookings and freight rates surge, with VLCC and Suezmax hires from West Asia rising sharply and shipping costs hovering near a five-year high.
India has shifted to West Asia for its oil imports as US sanctions are set to take effect from November 21. A surge in bookings for oil tankers carrying cargoes from West Asia to India signals higher import flows ahead, reports said.
Bloomberg reported, citing shipbroker data, that roughly a dozen tankers have been chartered this week to ship oil from Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates via the Arabian Sea. These bookings include supertankers—Very Large Crude Carriers (VLCCs)—and Suezmax vessels for cargoes loading in late November and December. Indian importers are also seeking additional tankers along the same route.
31 October 2025
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These developments come against the backdrop of US and European Commission sanctions on major Russian oil companies, Rosneft and Lukoil. The West imposed these measures in an effort to pressure Russian President Vladimir Putin to end the ongoing war in Ukraine and curb Moscow’s oil revenues. US President Donald Trump has repeatedly argued that Russia’s oil exports are fuelling the conflict, and that buyers—including India and China—are indirectly funding the war by continuing imports.
Indian Refiners No Longer Taking Russian Crude
Five out of seven Indian refiners have said they will no longer take delivery of Russian crude once the wind-down period ends this week. The two remaining companies are expected to continue considering purchases from non-sanctioned sellers. Data also shows that state-owned oil companies have already begun purchasing crude from West Asia, particularly from Saudi Arabia and Iraq, due to the sanction risks.
Washington has warned of secondary sanctions on buyers of Russian crude, triggering concern among traders.
Oil Tanker Prices Shoot Up
The latest bookings are pushing freight rates higher, with daily charter costs for oil supertankers on the West Asia–Asia route surging sharply. Freight prices on this route are currently hovering near a five-year high, the report said.
