Indian Refiners Explore Legal Pathways for Russian Oil Amid Sanctions

Indian refiners are currently assessing legal avenues to purchase Russian oil amid sanctions, following a temporary waiver from the US. This comes as global energy markets face significant disruptions due to ongoing conflicts in the Middle East. With India being a major oil importer, the government is taking steps to ensure fuel availability while navigating the complexities of international energy procurement. The situation highlights India's heavy reliance on Gulf energy and the challenges posed by geopolitical tensions. As refiners tread cautiously, the implications for India's energy security remain a critical concern.

By Narendra Chaudhary Mar 7, 2026, 08:40 IST

Legal Considerations for Russian Oil Purchases

allowfullscreen Indian refiners are currently seeking legal guidance on acquiring Russian oil that is under sanctions. This follows the announcement from the United States regarding a temporary waiver for crude oil that is stranded at sea, as reported by two government sources. This development occurs amidst ongoing disruptions in global energy markets due to the crisis in the Middle East.

On Thursday, Washington granted India a 30-day waiver allowing the purchase of Russian crude that had been loaded onto ships by March 5, valid until April 4. India has consistently stated that its energy procurement is driven by domestic needs and the welfare of its citizens, asserting that decisions are made independently based on national energy security.

Cautious Approach by Indian Refiners

Refiners cautious about sanctions risks

Despite the waiver, Indian refiners are meticulously assessing the legal ramifications before proceeding with any purchases. According to one source, refiners have thus far only acquired non-sanctioned oil, as they aim to avoid complications such as payment issues associated with oil linked to sanctioned entities and vessels.

State-run refiners in India have reportedly purchased at least 20 million barrels of Russian oil that were loaded onto ships in international waters, as per a Thursday report. These acquisitions are part of efforts to address supply shortages caused by the ongoing Middle East crisis.

India's Energy Dependence

India’s heavy dependence on Gulf energy

As the world's third-largest oil importer, India relies heavily on the Middle East for its crude supplies, with approximately 40% of imports originating from this region. Any disruption in the Gulf can significantly affect India's energy availability.

Decline in Russian Oil Imports

Russian oil imports had earlier declined

Following Russia's invasion of Ukraine in 2022, India emerged as the largest purchaser of Russian seaborne crude. However, earlier this year, Indian refiners began to scale back their purchases due to increasing pressure from the United States. Sources indicate that reducing Russian oil imports has allowed New Delhi to avoid 25% tariffs and advance an interim trade agreement with Washington.

Challenges from Middle East Energy Disruptions

Energy disruptions from the Middle East

India is currently grappling with energy supply challenges stemming from disruptions in the Gulf. Production of liquefied natural gas (LPG) in Qatar has been halted due to attacks on energy infrastructure, and supplies from the Abu Dhabi National Oil Company have also been impacted. Consequently, India has reduced gas supplies to various industries, including fertilizer plants, refineries, and petrochemical units.

Government Measures to Ensure Fuel Availability

Government steps to prevent fuel shortages

To mitigate any potential shortage of cooking fuel, the government has instructed refiners to boost the production of liquefied petroleum gas (LPG). Officials have indicated that additional measures may be implemented if the situation deteriorates. One source mentioned that the government is ready to act swiftly to ensure sufficient fuel availability across the country, including gasoline and gasoil.