Russia has intensified efforts to circumvent new US sanctions to preserve the export of cheap oil to India. According to new schemes, if the supplier of crude oil is a company not linked to “Rosneft” or “Lukoil,” then Indian refineries are not subject to American restrictions. Export data indicates that by December 2025, several new Russian exporters have emerged in the market, likely acting as shadow intermediaries between Russian oil giants and Indian refineries. These new entities are quickly beginning to dominate the market, and it is expected that the entire supply logistics will be restructured to adapt to the new realities in the coming months.
This is reported by Business • Media
India Maintains Flexibility in Oil Procurement
Currently, the Indian government has not imposed any official restrictions on state or private oil refining companies regarding the import of Russian oil. This allows companies to continue sourcing from Russia using new channels of interaction. At the same time, sanctions have made Russian oil significantly cheaper: its price is $9-10 per barrel lower than oil from the Middle East. For Indian companies, this means potential savings of nearly $4 billion annually. An exception among major players is Reliance, which has halted purchases of Russian oil due to the risks of falling under US and EU sanctions.
India Expands Supply Sources
“Export data shows that by December, several new Russian oil exporters emerged, likely to serve as shadow intermediaries between Russian oil giants and refineries in countries like India.”
Seeking to reduce dependence on individual suppliers, India is diversifying its sources of oil imports. For instance, Indian Oil Corp has purchased Ecuadorian Oriente oil for the first time, with delivery scheduled for the end of March 2026. Additionally, in December, the company acquired 2 million barrels of Colombian crude oil of the Castilla variety. These steps reflect India’s strategic aim to ensure supply stability at optimal prices and avoid risks associated with sanctions.