India has started buying American, Canadian, and Middle Eastern oil, but has not abandoned Russian supplies. The country’s giant Indian Oil Corp has recently purchased 7 million barrels of oil, Reuters reports. 

Indian Oil Corp strengthens supplies from the West and the Middle East

According to the latest findings, India’s largest oil refining company has bought 4.5 million barrels of American oil, 500,000 barrels of Canadian Western Canadian Select, and 2 million barrels of Das crude from Abu Dhabi. The delivery is scheduled for September 2025.

These large purchases are connected to the country’s intention to replace Russian oil due to falling discounts and new EU sanctions on Russian energy.

Sanctions pressure and trade risks

Earlier, Oil Minister Hardeep Singh Puri said India was ready to meet its oil needs from alternative sources if Russia’s supplies are affected by secondary sanctions. 

In July, US President Donald Trump stated that countries continuing to buy Russian oil could face 100% tariffs if Moscow does not agree to a peace deal with Ukraine within at first, 50 days and then 10 days.

NATO Secretary General Mark Rutte confirmed that due to the new economic measures, countries, including India, could suffer losses if they continue to do business with Moscow. 

Rosneft-linked oil payment rules changed after EU sanctions, Bloomberg reports. Mumbai-based Nayara Energy, the Indian refinery part-owned by Rosneft, now demands upfront payment or documentary letters of credit from buyers, showing how far-reaching the latest EU sanctions package is.

Nayara tightens oil deal terms after new EU measures

Nayara Energy Ltd., a key Indian refinery partially owned by Russia’s Rosneft, is now requiring advance payments or documentary letters of credit for upcoming oil shipments. According to Bloomberg, the shift was revealed in a revised tender document for a naphtha cargo scheduled for next month. The previous version of the tender included no such financial requirements. Naphtha is a fraction of crude oil, used for further petrochemical production.

Kpler analyst Zameer Yusof told Bloomberg the move “underscores how far-reaching the latest tranche of EU sanctions are.” He said the advance payment condition likely reflects fears that buyers may back out of deals or that banks could refuse to clear transactions involving sanctioned entities. 

In a weekend statement, Rosneft claimed that the EU’s new measures as “unjustified and illegal.” Meanwhile, Nayara insisted that operations remain normal and said it is “exploring all legal and appropriate avenues” to respond to the situation.

India’s role in Russian crude trade under pressure

India has become one of the largest importers of Russian crude since Moscow launched its full-scale invasion of Ukraine in 2022. As Western buyers turned away, Indian refiners stepped in to process Russian oil, including into diesel and other products that were then exported globally. Until now, Nayara had continued those operations without direct interference from sanctions.