India's Russian oil imports are set to plummet in December as Western sanctions take effect, sources reveal. This follows a surge in November, as refiners scrambled to secure supplies before the new restrictions. The U.S. and EU have tightened the noose on Moscow, targeting key Russian producers Rosneft and Lukoil. This has left Indian refiners in a tricky situation, with banks becoming more cautious and scrutinizing transactions. State-run Indian Oil Corp and Bharat Petroleum Corp have pledged to source only from non-sanctioned entities. Meanwhile, Reliance Industries has loaded pre-committed Russian oil cargoes and will process any arrivals post-November 20 at its local market-focused refinery. The shift towards U.S. oil is evident, with October imports reaching their highest since June 2024, as refiners capitalize on arbitrage opportunities. India's energy landscape is under pressure, with Washington doubling tariffs on Indian imports, citing the purchase of Russian oil. This complex situation highlights the geopolitical implications of energy trade and the challenges faced by Indian companies in a rapidly changing market.
