The world’s third-largest oil importer had not received shipments from Iran since May 2019, when U.S. pressure led buyers to halt purchases, but recent supply strains stemming from the U.S.-Israel conflict have tightened availability for the South Asian nation.

“Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran; and there is no payment hurdle for Iranian crude imports,” the ministry said in a statement on X, indicating that financial channels for such transactions are currently functioning.

The development follows a temporary easing of U.S. sanctions on Iranian oil and refined products last month aimed at alleviating global supply shortages, according to the report.India said it has secured its full crude oil requirements for the coming months, adding that refiners retain flexibility to source supplies from more than 40 countries based on commercial considerations.

In addition to crude, India has imported 44,000 metric tons of Iranian liquefied petroleum gas carried on a sanctioned vessel that berthed at the western port of Mangalore on Wednesday and is currently discharging cargo, the ministry said.

Reliance, which operates the world’s largest refining complex at Jamnagar in Gujarat, last received Russian crude in December after securing a one-month U.S. concession that allowed it to wind down direct dealings with sanctioned Russian producer Rosneft beyond a November deadline.

Sources said the company will now buy Russian oil only from non-sanctioned sellers, ensuring the cargoes remain compliant with international sanctions regimes, though the exact number of shipments expected in February and March has not been disclosed.

It remains unclear whether Reliance will continue importing Russian crude beyond March, reflecting uncertainty faced by refiners navigating evolving sanctions rules and geopolitical pressures linked to the Ukraine conflict.

Reliance has not publicly commented on the renewed purchases, but the move signals that Russian oil still plays a role in India’s energy mix, even as volumes are expected to remain lower than in previous months.

Despite Reliance’s return to Russian crude, India’s overall imports from Russia are likely to stay subdued through February and March, as refiners increasingly turn to alternative suppliers, particularly in the Middle East.

Reliance had previously been importing up to 500,000 barrels per day of Russian crude under a long-term agreement with Rosneft to feed its 1.4 million barrels-per-day Jamnagar refinery complex, making it one of the biggest conduits for Russian oil into India.

The shift comes as European Union regulations tighten further, with the bloc stating it will not accept fuel produced at refineries that processed Russian oil within 60 days prior to the bill-of-lading date, a rule that directly affects export-oriented refiners.

To navigate these restrictions, Reliance has said it will process post-November Russian cargoes at its India-focused 660,000 barrels-per-day refinery, allowing its 704,000 barrels-per-day export-oriented plant to continue selling fuel into the European market.

Indian refiners, who became the largest buyers of discounted Russian seaborne crude after the 2022 outbreak of the Ukraine war, are now reassessing procurement strategies to balance cost advantages against compliance risks.

As part of this recalibration, purchases of Middle Eastern crude have risen, with national oil companies in the region emerging as more stable long-term suppliers amid regulatory uncertainty surrounding Russian barrels.

Reliance executives have acknowledged the challenges posed by sudden sanctions, noting that the company has previously had to cut back imports abruptly and has since diversified sourcing to avoid disruptions in the spot market.

The renewed but limited intake of Russian oil underscores India’s pragmatic approach to energy security, seeking affordable supplies while maintaining access to key export markets such as the European Union.

For global oil markets, Reliance’s decision reflects how refiners are threading a narrow path between geopolitics, sanctions compliance and commercial realities, particularly as enforcement rules become more complex.

As sanctions evolve and buyers adapt, the coming months will show whether Russian crude retains a foothold in India’s refining system or continues to be gradually replaced by Middle Eastern and other alternatives.

India’s imports of Russian crude are projected to fall sharply in December, reaching their lowest level in nearly three years as refiners move quickly to comply with expanded Western restrictions on Russian energy flows.

The change marks a significant shift from the high volumes seen in recent months, during which Russian grades remained a major part of India’s crude basket.

The decline follows newly strengthened sanctions issued by the United States, the European Union and the United Kingdom, which have placed increased pressure on Russian oil producers and on the financial channels used to settle such trade.

Several refiners and trading sources indicated that banks are now adopting stricter due-diligence procedures, making transactions involving Russian firms more challenging.

The latest measures specifically target major Russian producers, prompting buyers to halt or wind down purchases linked to certain companies.

Refiners were given a deadline in late November to end dealings with key entities, resulting in a scramble to secure alternative supplies before compliance cut-off dates.

Additionally, a separate EU rule coming into effect early next year restricts the import of fuels produced from Russian-origin crude within a defined time window.

This requirement is expected to further limit the pathways through which Russian oil can reach global markets, including India.

Indian refiners, particularly state-run companies, have responded with heightened caution due to increased banking scrutiny.

Preliminary shipping projections suggest that India may receive between 600,000 and 650,000 barrels per day of Russian crude in December—significantly below levels recorded in October and November.

Throughout November, imports were elevated as refiners sought to build inventories ahead of the sanctions deadline and also adjusted to evolving European rules for future fuel exports.

Industry sources noted that several companies accelerated purchases to prevent supply gaps during the transition period.

Many Indian refiners, including those operating major coastal facilities, have already halted their Russian crude purchases entirely.
Others have limited procurement solely to non-sanctioned entities to avoid legal or financial exposure.

Certain private refiners remain partially aligned with Russian suppliers due to existing commercial structures or equity relationships.
However, they too are adjusting operations to ensure regulatory compliance after the transition deadlines.

One major private operator indicated that any Russian cargoes secured before the compliance date would be processed normally, while later shipments would be directed to domestic-fuel-oriented units to avoid complications.

The company also noted that its export-focused refinery would refrain from processing Russian grades after the deadline.

At the same time, India’s crude mix is showing signs of diversification, with U.S. oil gaining a larger share in recent import data.
This shift is partly driven by favourable price dynamics and partly by diplomatic pressures that seek a more balanced energy relationship.

U.S. crude purchases rose to their highest level in more than a year in October as refiners capitalised on arbitrage opportunities and reduced reliance on Russian grades.

Broader geopolitical considerations are also in play, with trade measures prompting Indian refiners to increase engagement with alternative markets.

India continues to explore flexible sourcing options to maintain stability in domestic fuel supplies while navigating complex global regulatory frameworks.

As sanctions evolve and financial scrutiny deepens, refiners are preparing for continued adjustments in crude strategy and long-term procurement planning.

Reliance Industries, India’s leading private refiner, is set to recalibrate its Russian oil imports in full compliance with government guidelines. State-owned refiners, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, are also reviewing their supply chains to ensure smooth transitions, demonstrating India’s commitment to international trade norms and energy security.

The adjustments will allow India to expand procurement from alternative markets, including the Middle East and other global suppliers, maintaining steady crude supplies while enhancing long-term energy resilience. Analysts estimate that the change will have a minimal impact on the overall import bill, reflecting efficient planning and cost management.

By diversifying sources, Indian refiners are strengthening the country’s energy independence and reducing risks associated with relying heavily on a single supplier. This approach also provides new opportunities to explore competitive global markets and adopt best practices in supply chain management.

The move comes at a time when India is negotiating trade agreements with the U.S., and realignment of oil imports could help facilitate favorable outcomes for Indian exporters. By proactively adjusting trade practices, India demonstrates flexibility and foresight in balancing domestic needs with global obligations.

Industry experts highlight that India’s ability to source crude from multiple regions will safeguard domestic supply while supporting continued economic growth. The strategy ensures uninterrupted refinery operations and contributes to stable energy prices, benefiting both industries and consumers nationwide.

Indian refiners are also exploring innovative financial arrangements to maintain smooth operations and access global capital markets. By leveraging strong regulatory compliance and market insights, India’s energy sector is poised to remain robust and competitive in the global arena.

Overall, the strategic recalibration of oil imports reflects India’s proactive approach to energy security, trade cooperation, and economic stability. By diversifying supply sources and aligning with international norms, the country is setting a positive course for sustainable growth and strengthened global partnerships.