India Has Begun Looking For A Replacement For Russian Oil
- 21.09.2026, 17:35
Trump's "hellish sanctions" forced New Delhi to reconsider its purchases from Moscow.
India is preparing to cut back on its purchases of Russian oil following U.S. President Donald Trump’s signing of the “Hellish Sanctions” law, which allows for the imposition of 100 percent tariffs on importers of Russian oil. India’s largest oil refining companies have in recent days begun actively seeking alternative sources of crude, according to Bloomberg reports, citing sources.
Russia accounted for just over half of the country’s oil imports, which allowed New Delhi to offset supply disruptions from the Middle East. Russian shipments have already begun to decline. According to Kpler’s estimates, they could total 1.9 million barrels per day in September, which would be the lowest level since April. India is examining how the restrictions will affect China and other major buyers of Russian oil.
Indian refineries are finalizing purchases for delivery in November. It will not be easy for India to quickly replace Russian oil. The volume of purchases from Russia significantly exceeds potential shipments from Venezuela or Iran, and alternative crude from the Middle East is more expensive. At the end of last week, Urals crude for delivery to India was priced at $133 per barrel, while Oman and Murban grades were selling for several dollars more.
Oil consumption in India is rising. The launch of a new refinery in Rajasthan and the expansion of other facilities could boost the country’s purchases to a record 5.4 million barrels per day. “India should continue to buy oil from Russia as long as it remains competitive. India should ignore U.S. threats to impose tariffs, as there is no end to them. The U.S. may soon come up with new ways to impose additional tariffs,” said Ajay Shrivastava , founder of the Global Trade Research Initiative .
Hungary has requested an exemption from the sanctions, according to Bloomberg. It received a one-year exemption following a meeting between Trump and former Prime Minister Viktor Orbán at the White House last November. Orbán claimed that the exemption would remain in effect as long as both politicians remained in power. In April 2026, Orbán lost the election, and Hungary’s new government will have to seek an extension of the exemption on its own.
Trump signed the “hellish sanctions” bill against Russia on September 18. It allows the president to impose tariffs on the five largest countries that purchase Russian oil and gas if the share of Russian energy resources in their imports exceeds 15%. India and China fall under these criteria. Similar tariffs are imposed on countries that help Russia circumvent sanctions.