“India’s Biggest Refinery Rejects US Oil, Defies America’s Sanctions Push”

At the end of August, the United States imposed 25% tariffs on Indian goods in response to the country’s ongoing purchases of Russian oil. At the same time, Indian Oil Corporation (IOC)—India’s largest state-owned oil refiner—removed American crude from its latest tender.

Officials in New Delhi stated that India would continue buying crude oil from Russia, emphasizing that U.S. sanctions are not genuinely about oil, but rather about limiting access for American companies to India’s agricultural and dairy markets.

“Indian Oil has refused to purchase American crude in its latest tender, instead acquiring 2 million barrels of West African oil and 1 million barrels of Middle Eastern crude,”
— Reuters reported, citing trading sources.

The agency specified that the state-run company bought 1 million barrels each of Agbami and Usan grades from French oil major TotalEnergies, and another 1 million barrels of Das crude from Abu Dhabi’s Shell.

“The Nigerian oil was purchased on a free-on-board (FOB) basis, while the Das crude was acquired with delivery terms for late October to early November at Indian ports. In a previous tender held last week, IOC had purchased 5 million barrels of U.S. West Texas Intermediate (WTI) crude,”
— Reuters added.

Earlier purchases of American crude had helped to narrow India’s large trade surplus with the United States, but they did not prevent the imposition of the 25% tariffs by Washington in retaliation for Russian oil imports.

Indian Oil, according to reports, confirmed that stable imports of Russian crude are already planned for the coming months. The company noted that supply volumes for October and November are secured, and that the recent dip in imports was due to favorable discounts and large stockpiles in storage—not due to policy changes

However, the ban may not drastically reduce Russian oil flows into India. Behind the scenes, Rosneft CEO Igor Sechin is reportedly using the shadow fleet—an informal and opaque network of tankers—to sustain Russian crude shipments to Indian buyers, including Nayara Energy, in which Rosneft holds a significant stake.

Notably, the recent appointment of former CEO of SOCAR Turkey , to a CEO role at Nayara Energy has reportedly revived coordination between the shadow fleet and Indian refiners. Sources suggest preparations are underway for a large new wave of Russian oil deliveries into India.