Indian Oil Corp, India's largest refiner, has purchased around 7 million barrels of crude from Angola, Brazil, and the United Arab Emirates for March delivery, Reuters reported, citing trade sources - a sign that Western sanctions are reshaping global oil flows away from Moscow.
The shift comes as Indian refiners adjust procurement strategies to reduce reliance on Russian crude following tougher Western sanctions.
India’s imports of Russian oil fell to their lowest level in two years in December, while crude sourced from OPEC producers reached an 11-month high, trade data showed.
New suppliers fill the gap
The new purchases include oil from Brazil’s state-controlled producer Petrobras, as well as cargoes from the Middle East and Africa, the sources said. Indian Oil is India’s largest refiner and a key buyer on the global crude market.
India had emerged as the largest buyer of discounted Russian seaborne crude after the start of Russia’s full-scale invasion of Ukraine in 2022. Refiners there are now diversifying supplies, including purchases from Latin America and the Middle East, as part of efforts to stabilize supply and respond to sanctions pressures.
Sanctions tighten the screws
The pressure on Russian oil has intensified in recent weeks. The EU cut its price cap to $44.10 per barrel as of 1 February - and for the first time, the cap will automatically drop further if oil prices fall, ensuring Russia cannot benefit from cheaper global crude.
In Washington, President Trump has backed legislation threatening 500% tariffs on any country buying Russian oil, gas, or uranium - a vote could come as early as next week.
Frequently asked questions
Indian refiners are diversifying their crude sources to reduce reliance on Russia due to tightening Western sanctions and increased compliance risks. Recent measures, including a lower EU price cap and potential 500% US tariffs on countries buying Russian energy, have pushed refiners to seek more stable and less legally complex alternatives
India’s largest refiner, Indian Oil Corp, has shifted toward suppliers in the Middle East, Africa, and Latin America, recently purchasing 7 million barrels from Angola, Brazil, and the United Arab Emirates. Trade data shows that while Russian imports hit a two-year low in December, supplies from OPEC producers have reached an 11-month high.
President Trump has backed a sanctions bill that threatens to impose tariffs of up to 500% on any country that continues to purchase Russian oil, gas, or uranium. This legislation aims to provide Washington with maximum leverage to pressure global buyers into cutting off Russia's primary source of war time revenue.
President Trump has backed a sanctions bill that threatens to impose tariffs of up to 500% on any country that continues to purchase Russian oil, gas, or uranium. This legislation aims to provide Washington with maximum leverage to pressure global buyers into cutting off Russia's primary source of war time revenue
