India renews limited Russian oil buys from non-sanctioned traders as discounts grow

Government-run refiners Indian Oil Corp. and Bharat Petroleum Corp. have booked Russian crude for January arrival, attracted by generous markdowns and available volumes from non-sanctioned traders, according to people with knowledge of the transactions.

The refiners obtained an unspecified number of cargoes at roughly a $5-per-barrel discount to Dated Brent from new trading firms, the people said, declining to be identified because the matter isn’t public. A month earlier, similar deals were closer to a $3-per-barrel discount.

Sources said India’s total Russian crude purchases are likely to amount to no more than one-third of the volume seen earlier this year — or under 600,000 barrels per day. Sanctioned refiner Nayara Energy Ltd., partly owned by Rosneft PJSC, typically accounts for over half of that amount.

After factoring in discounts and shipping costs, Russia’s net earnings are estimated at $40–$45 a barrel on average, with payments reportedly made in UAE dirhams and US dollars, the people added.

IOC, the country’s largest refiner, has been acquiring non-sanctioned Russian oil for several weeks and took some December cargoes. BPCL had paused Russian imports during that period. Neither company responded to requests for comment.

The new deals mark a careful re-entry into Russian crude by Indian refiners, though overall spot buying remains limited as companies evaluate the evolving sanctions framework. Talks between Washington and New Delhi continue, with oil shipments still posing diplomatic challenges. The Trump administration has repeatedly criticized India over its energy trade with Moscow.

Four major Russian oil producers — Rosneft, Lukoil PJSC, Surgutneftegaz, and Gazprom Neft — remain subject to US sanctions, prompting banks that serve Indian refiners to tighten checks on transactions. The tougher measures may also dethrone Russia from its recent position as India’s top crude supplier, likely giving rivals such as Saudi Arabia room to regain market share.