India's imports of Russian crude oil are set to decline due to new US sanctions targeting major Russian oil exporters. This shift is significant as it affects India's energy supply and pricing.

India's imports of Russian crude oil are anticipated to decline significantly due to new US sanctions that took effect on November 21, targeting major Russian oil exporters like Rosneft and Lukoil. These sanctions have transformed crude linked to these companies into a 'sanctioned molecule,' prompting Indian refiners to reassess their supply strategies. Although imports from Russia averaged 1.7 million barrels per day this year, analysts expect a drop to around 400,000 barrels per day in December and January. Despite this, Russian oil may still reach India through non-designated entities. The sanctions have already led companies like Reliance Industries to halt imports, while Nayara Energy remains dependent on Russian crude. The evolving situation creates uncertainty in India's energy supply, which has increasingly relied on Russian oil since the Ukraine invasion. The future of these imports will depend on how strictly sanctions are enforced and whether alternative supply routes can be established.