India’s major oil refineries — the world’s largest importers of Russian crude — may scale back purchases following the European Union’s recently adopted sanctions package against Russia. This was reported by Bloomberg, citing informed market sources and senior refinery executives who requested anonymity.
According to the report, Indian refineries are exploring alternative oil supply sources. However, a complete abandonment of Russian oil remains unlikely at this stage, as no major shift has yet occurred, a Bloomberg source clarified.
It is worth noting that the EU’s new sanctions have dealt a significant blow to Russia’s oil industry. One of the measures targets a large Indian refinery with Russian involvement. Additionally, the price cap on Russian oil has been lowered, and the EU has banned the import of petroleum products produced from Russian crude.
On Tuesday, July 29, India’s ambassador to the United Kingdom, Vikram Doraiswami, told Times Radio that EU countries continue to purchase rare earth metals from Russia while pressuring India to limit its energy imports from Moscow. The diplomat stated that India imports over 80% of its energy needs and has no intention of halting oil purchases from Russia despite EU pressure.
“India is the world’s third-largest energy consumer. We import more than 80% of our energy. What would you like us to do? Shut down our economy?” the ambassador retorted sharply to the interviewer.
According to Gazeta.Ru, in the first half of 2025, Russia remained India’s top oil supplier, accounting for 35% of total imports. The primary driver of these purchases has been significant discounts — up to $15–20 per barrel — offered in response to Western sanctions.
Experts point out that India became Russia’s main oil customer after Western sanctions were imposed in 2022 following the invasion of Ukraine. They emphasize that India’s current economic growth is largely underpinned by affordable Russian energy, and replacing this advantageous supply will be extremely difficult — a serious blow to India’s economy.
Nevertheless, despite bold public statements, India has begun searching for alternatives. According to Bloomberg, the state-owned Mangalore Refinery & Petrochemicals Ltd. (MRPL) purchased approximately 1.3 million barrels of Azerbaijani oil, to be delivered to the New Mangalore Port between late August and September. Sources noted that the deal was finalized ahead of the typical schedule and that Azerbaijani crude is not commonly used by Indian refineries.
Hindustan Petroleum Corp. (HPCL) acquired West African crude grades, including Nigeria’s Bonny Light, Egina, and Qua Iboe. Meanwhile, Reliance Industries Ltd. purchased the UAE’s flagship Murban crude — a premium oil blend that typically costs more than the heavier blends exported from Russia and the Middle East, Bloomberg reports.
Industry insiders reassured that such diversification is standard for a large economy like India’s. Nonetheless, the accelerated pace of the search for alternatives has not gone unnoticed.
Meanwhile, oil cooperation between India and Azerbaijan was already initiated six months ago. In February, SOCAR signed a memorandum of cooperation with Indian companies Mangalore Refinery and Petrochemicals Limited (MRPL) and Oil and Natural Gas Corporation Limited (ONGC).
According to ONGC, on February 12, during India Energy Week, SOCAR, MRPL, and ONGC signed a non-binding Memorandum of Understanding (MoU) to explore strategic opportunities in the energy sector. The MoU includes cooperation in key areas such as crude oil and LNG supply, the sale and delivery of petroleum products, the exploration of trading opportunities, and capacity building through knowledge sharing.
ONGC noted that this strategic partnership would strengthen its presence in Azerbaijan’s oil and gas sector, particularly in the ACG (Azeri–Chirag–Gunashli) and BTC (Baku–Tbilisi–Ceyhan) projects. Currently, ONGC Videsh holds a 2.92% stake in ACG and 3.1% in the BTC pipeline. MRPL, a refinery located in Mangalore, is a subsidiary of ONGC.
Previously, India’s Oil Minister Hardeep Singh Puri stated at an industry forum in New York that he was “not worried at all.” “If something happens, we’ll deal with it,” he was quoted by Reuters. According to the minister, India already cooperates with 40 suppliers, including Guyana, Brazil, and Canada — countries capable of compensating for lost volumes in case of U.S. sanctions against buyers of Russian oil.
It is worth recalling that Donald Trump has threatened such countries with 100% tariffs.
Such tariffs are unlikely to sit well with New Delhi. Therefore, the search for new suppliers will continue, as India may ultimately hesitate to persist with Russian oil imports. The current U.S. president does not take such matters lightly.
By Tural Heybatov
