State-run Indian Oil Corporation and Rosneft-backed Nayara Energy have significantly increased their purchases of Russian crude oil during January. This development comes at a time when India's overall imports from Russia have actually declined. The decline follows the implementation of US sanctions targeting Russian energy exports.
Major Refiners Step Back
Reliance Industries, which was India's largest buyer of Russian crude over the past year, has not received any supplies this month. Several other major refiners have also stepped back from the market. According to reports, this leaves Indian Oil, Nayara Energy, and Bharat Petroleum Corporation (BPCL) as the primary importers of Russian oil so far in January.
Sharp Decline in Overall Imports
Data from the global analytics provider Kpler shows a clear trend. India's imports of Russian oil averaged 1.18 million barrels per day in the first half of January. This figure represents a steep drop of about 30 percent compared to the same period last year. It is also roughly 30 percent lower than the average for the year 2025. Compared to December 2025, imports were approximately 3 percent lower.
US Sanctions Reshape the Market
US sanctions have dramatically narrowed the pool of buyers for Russian crude. Shipments are now restricted to just a handful of Indian refiners. This market shift has created opportunities for those still willing to purchase.
Indian Oil Leads the Pack
Indian Oil Corporation emerged as the top buyer in January. The company received about 500,000 barrels per day. This volume accounted for nearly 43 percent of all Russian crude shipped to India during the month. For Indian Oil, this intake was its highest average since May 2024. It also marked a substantial 64 percent increase above its average intake for the year 2025.
Nayara Energy Follows Closely
Nayara Energy secured the position of the second-largest buyer. The company has become fully reliant on Russian oil since facing European Union sanctions last year. In January, Nayara imported approximately 471,000 barrels per day. This amount constituted about 40 percent of the Russian volumes shipped to India. It was Nayara's highest import level in at least two years, standing 56 percent above its 2025 average.
BPCL Maintains Steady Purchases
Bharat Petroleum Corporation (BPCL) also remained an active importer. The company received around 200,000 barrels per day. This figure was slightly above its 2025 average of 185,000 barrels per day.
Other Refiners Stay Away
Several other major Indian refiners received no Russian cargoes in the first half of January. This group includes Hindustan Petroleum Corporation, HPCL-Mittal Energy Ltd, Mangalore Refinery & Petrochemicals Ltd, and the aforementioned Reliance Industries. Their absence from the market is notable.
Increased Discounts Attract Buyers
Reduced demand from some Indian and Chinese buyers has prompted Russian suppliers to offer larger discounts. Industry executives confirm that discounts on Russia's flagship Urals crude for delivery to Indian ports have widened. The discounts now range between $5 and $6 per barrel. This is a significant increase from the $2 per barrel discount available before US sanctions on Rosneft and Lukoil last October.
Indian Oil Corporation has specifically increased its intake this month to capitalize on these more attractive prices.
Strategic Recalibration by Indian Refiners
Indian refiners began adjusting their strategies regarding discounted Russian crude last year. The recalibration followed US criticism of India's purchases and threats of additional tariffs. Some refiners moderated their imports after a 25 percent tariff took effect on Indian exports to the US in late August.
Heightened Caution Post-Sanctions
However, the recent US sanctions on Rosneft and Lukoil have intensified caution across the industry. Most Indian refiners have now stopped receiving cargoes from sanctioned suppliers. The key exception is Rosneft-backed Nayara Energy, according to industry sources.
Data from Kpler shows that Reliance Industries, which holds a term deal with Rosneft, has halted shipments. The halt applies to both Rosneft and other Russian suppliers.
