India May Halve Its Purchases of Russian Oil Due to U.S. Sanctions — Bloomberg

Indian oil refineries may nearly halve the share of Russian oil in their imports due to new U.S. sanctions. According to Bloomberg, that share could drop from current levels to 20–30% in the near future.

 

This year, Russian oil accounted for 40% of the Indian market, and in June and July, that share exceeded 50% amid supply disruptions from the Middle East caused by the blockade of the Strait of Hormuz. However, following the passage of a U.S. law allowing President Donald Trump to impose tariffs of up to 100% on the largest buyers of Russian oil, Indian refiners are reevaluating their purchases.

At the same time, Russian oil has become less profitable for Indian refineries. While Russian oil was previously sold to India at significant discounts, its price at Indian ports has now reached $133 per barrel, according to Bloomberg, citing Argus, exceeding the price of Brent.

Amid the sanctions, Indian companies are already cutting back on purchases. In September, they totaled about 1.9 million barrels per day, down from 2.8 million in July.

At the same time, the Indian Ministry of External Affairs stated its intention to protect national interests and warned of possible consequences for bilateral relations with the U.S.

By the end of 2025, India had already cut its imports of Russian oil by roughly half after the U.S. imposed sanctions against Rosneft and Lukoil. At that time, shipments had fallen to about 0.9 million barrels per day.

Source: Bloomberg

As a reminder, China was angered by the new U.S. sanctions against Russia.

On September 18, U.S. President Donald Trump signed a law imposing sanctions against Russia as an aggressor state. 

Following the signing of the “hellish sanctions” bill, its practical implementation will be the key issue. Specifically, the legislation allows for the imposition of tariffs of up to 100% on imports from countries that purchase significant volumes of Russian energy resources or facilitate the circumvention of sanctions.

Earlier, the U.S. imposed sanctions against the Iranian cryptocurrency exchange BitBank, which is controlled by sanctioned Iranian financier Babak Zanjani.