Russia Restructures Its Oil Market Amid Escalating Sanctions: Reduced Purchases by Turkey and India, Increased Purchases by China

The United States and the European Union implemented upgraded comprehensive sanctions against Russian oil sellers and freight operators—including energy giants Rosneft and Lukoil—at the end of 2025. The introduction of secondary sanctions threats has complicated global buyers’ procurement processes and strengthened oversight of Russia’s crude oil exports. Preliminary data from the London Stock Exchange indicates that, based on trading volumes in early and mid-January, China is expected to receive nearly 1.5 million barrels per day (bpd) of Russian oil via maritime routes in January 2026—up from 1.1 million bpd in December. China is a major consumer of Russia’s Far East ESPO blend. Data from energy consultancy Kpler shows that China’s imports of Russian Urals crude reached a record high of 405,000 bpd in January—the highest level since mid-2023. Urals is only one grade among Russia’s seaborne oil exports. Since the EU imposed its ban on Moscow’s oil in 2022, India had been the largest buyer of seaborne Russian Urals crude. According to LSEG data, India slashed its purchases in December 2025 to below 1 million bpd—down from an average of 1.3 million bpd last year. In the first 20 days of January 2026, Indian refineries imported approximately 900,000 bpd of Russian oil, continuing efforts to diversify supply sources. Turkey—the third-largest buyer of Russian oil—reduced its Urals imports to about 250,000 bpd in January this year, down from an average of 275,000 bpd in 2025 and a record high of 400,000 bpd in June last year. Reports indicate that demand for Russian Urals crude from India and Turkey—both major diesel exporters—has dropped sharply due to the EU’s ban on fuels derived from Russian crude. A trader involved in Russian oil sales said: “As Indian and Turkish buyers have recently reduced purchases, some Russian Urals crude is now heading to China.” He explained that increased Chinese corporate procurement of Russian seaborne oil may be linked to expanded discounting on Urals. According to two Asia-based traders active in the market, the discount for Urals crude delivered to China at the end of 2025 widened to $12 per barrel below ICE Brent, while the current Urals discount stands near $10 below the benchmark. Secondly, reducing Russian oil purchases is not a short-term measure but likely reflects India’s medium- to long-term strategy. India’s Economic Times reported on January 23 that Petroleum Minister Hardeep Singh Puri stated India could leverage its growing energy demand to negotiate better oil and gas supply agreements, as Indian refiners continue seeking alternatives to Russian oil. After Moscow’s invasion of Ukraine in February 2022, India became the largest buyer of Russian seaborne crude—but challenges arising from Western sanctions ultimately prompted Indian refiners to increase imports from other sources. Indian officials have carefully avoided directly referencing Russian oil imports; however, in his Friday speech, Minister Puri noted that the surge in supply from “a single source (Russia)” following February 2022 is now receding. LSEG data shows India’s Russian oil imports in December fell to their lowest level in two years, while its share of imports from the Middle East reached the highest in 11 months.

India’s COVID-19 Situation Summary, Wednesday, August 24, 2022

Part III: India’s Socioeconomic Landscape 1. Tata may need to absorb cumulative losses of ₹26 billion for AirAsia India. Tata plans to merge AirAsia India into Air India and consolidate it with Air India Express—a carrier offering no additional services. An audit report raised concerns over AirAsia India’s “going concern” status, noting that its net worth has been fully eroded and liabilities exceed current assets. Tata-owned Air India has proposed acquiring 100% of AirAsia India’s shares and has sought approval from the Competition Commission of India. Tata holds 83.67% of this low-cost carrier, while the remaining 16.33% is held by AirAsia Investment Ltd., a subsidiary of Malaysia’s AirAsia Group. 2. Approximately 60% of Indian state-owned refiners’ crude oil requirements are met through annual contracts renewed each year—primarily with oil companies in West Asia. The remainder comes from the spot market, where inexpensive Russian oil has accounted for a large share of India’s spot purchases this year. Negotiations for annual contracts beginning in January start between September and October, while those for contracts commencing in April begin between December and January. Most such contracts with West Asian producers include both “fixed” and “optional” volume components. Senior executives at Indian state-owned refiners say Middle Eastern crude exporters are unlikely to significantly cut supplies to India next year to meet surging European demand. They are currently preparing for annual procurement negotiations with Gulf suppliers. 3. EverEnviro—a wholly owned subsidiary of the Green Growth Equity Fund—plans to invest ₹10 billion to establish 14 compressed biogas plants across India. 4. Digital payment platforms will lobby the Reserve Bank of India to introduce new digital lending guidelines that eliminate the need for intermediaries. Regulators require all loans to flow directly from regulated entities to customers’ accounts—effectively removing digital payment platforms from such transactions. Aggregators and their advocacy group, the FinTech Consumer Empowerment Association, are seeking relaxation of these norms, which threaten their business models. 5. Creditors of Future Retail Limited have filed claims totaling ₹213,241.8 crore against the heavily indebted company, which is currently undergoing insolvency resolution proceedings. Financial creditors include primarily banks and financial institutions. 6. Tata Consultancy Services delayed the disbursement of variable pay for some employees for June by one month. A few days later, India’s largest IT firm announced on Tuesday that it would pay 100% of variable compensation to over 600,000 employees. 7. Infosys Technologies leased approximately 500,000 square feet of office space in Bengaluru to expand operations—a one of the city’s largest office leasing deals in recent years. The company will distribute its offices across the city rather than concentrating them in a single location. 8. Adani Group will acquire New Delhi Television’s news channel. On Tuesday, India’s Adani Group announced its media arm would acquire a majority stake in New Delhi Television (NDTV)—the billionaire Gautam Adani’s most prominent bet yet in the dynamic media sector. NDTV is one of India’s most popular television networks. An Adani subsidiary will indirectly acquire 29.18% of NDTV Ltd. and launch a public offer for an additional 26%. 9. Hindalco Industries announced on Tuesday that it has allocated approximately $8 billion in capital expenditure over the next five years for its subsidiaries Novelis and its Indian operations. Novelis has identified $4.5 billion in potential investment opportunities, including nearly $3 billion in India. Seventy percent of the company’s consolidated cash flow will be directed toward high-growth downstream businesses—including electric vehicles, mobile devices, batteries, and durable consumer goods.

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Indian Oil to Trim Term Deals With Gulf Producers For Next Year

Indian Oil to Trim Term Deals With Gulf Producers For Next Year

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