Indian oil firms are reportedly backing away from long-term deals for Russian oil amid tough sanctions

• Refiners in India are reportedly cooling to the prospect of long-term deals with Russian oil firms, Bloomberg reported.
• Three Indian refiners were in talks to receive 500,000 barrels a day from Rosneft.

Top oil refiners in India are reportedly backing away from long-term contracts for crude oil from Russian suppliers amid intensifying US sanctions.

Bloomberg reported that three of India's state-owned oil refiners had been in talks with Russian energy giant Rosneft to lock in 500,000 barrels a day, about equivalent to one-third of India's daily imports.

The report from Bloomberg said India's largest state-owned refiner, Indian Oil, is considering slashing crude supply from Russia under its long-standing term supply, while two other big firms, Bharat Petroleum and Hindustan Petroleum, have not committed to long-term contracts with Russian suppliers. Contracted deals would reduce dependence on one-off purchases, which are more expensive, Bloomberg said.

The move away from long-term deals for Russian crude comes as sanctions from the West crack down on Russia's oil trade, with India buying more from other nations like Saudi Arabia in February.

Though Russia is still the country's biggest supplier of crude oil, Indian refiners are increasingly turning to Middle Eastern nations like Iraq, the UAE, and Saudi Arabia. The shift dragged the country's Russian oil imports to the lowest level last month since January 2023.

Sources told Bloomberg that in the upcoming fiscal year starting April 1, state refiners plan to meet 40% of their crude needs through spot deals, indicating a large volume of Russian oil will still flow to India.