Sanctions Rattle India's Russian Oil Import Strategy

India's imports of Russian crude oil are set to decline as new US sanctions on Russian exporters like Rosneft and Lukoil take effect. While Russian oil still remains attractive due to discounts, Indian refiners must navigate increasingly complex trade channels, highlighting heightened uncertainty and dependency on alternative imports.

The landscape of India's crude oil imports is undergoing significant shifts as new US sanctions on Russian firms Rosneft and Lukoil kick in. With these measures, Russian oil imports are predicted to decline sharply, compelling Indian refiners to reassess their purchasing strategies.

Traditionally reliant on Middle Eastern oil, India ramped up imports from Russia post-Ukraine invasion, taking advantage of steep discounts. In recent developments, analysts project a considerable drop in Russian oil flows through December and January, as major Indian companies halt imports to comply with the sanctions.

The situation remains fluid, with new trading intermediaries and alternative sourcing from regions like the Middle East and Latin America expected to partially fill the void. However, the geopolitical landscape continues to fuel uncertainty in the oil import dynamics, testing the resolve and agility of Indian refiners.

(With inputs from agencies.)