India's Strategic Shift: Navigating US Sanctions on Russian Crude

India is navigating a strategic shift in its crude oil imports as it plans to reduce direct imports from Russia following new U.S. sanctions on major Russian exporters Rosneft and Lukoil.

Indian refiners, significant importers of Russian crude, are expected to comply with the sanctions, triggering a sharp decline in Russian crude arrivals in December. The new strategy involves exploring alternative sources such as the Middle East, Latin America, and other regions to offset the reduced Russian supply.

Reliance Industries Ltd and state-controlled refiners like Mangalore Refinery are among those pausing Russian imports. Instead, Indian refiners are increasing procurement from disparate regions to maintain supply flow, despite potential increased freight costs and logistical challenges.