In February 2025, Indian refiners shifted their focus towards Latin America and Africa to secure alternative crude oil supplies, driven by concerns over potential disruptions in Russian oil deliveries due to heightened U.S. sanctions.

This strategic move follows the imposition of Western sanctions on Russia after its invasion of Ukraine in 2022, which led India to become the largest buyer of discounted Russian oil transported by sea.

However, in February, India's imports of Russian oil decreased by about 3% compared to January, reaching approximately 1.54 million barrels per day (bpd), marking the lowest share since January 2024.

Conversely, India's oil imports from Africa rose significantly, increasing from 1,43,000 barrels per day in January to about 3,30,000 barrels per day in February. Similarly, imports from South America surged by 60%, reaching 4,53,600 barrels per day.

This shift is attributed to the U.S. sanctions imposed in January on Russian oil producers and tankers, which disrupted supplies and restricted shipping vessel availability. As a result, Russia's contribution to India's total oil imports decreased to about 30.5% in February, while Latin America's share increased to 9%, its highest level since December 2021.

India also imported oil from new sources, including Argentina's Medanito oil for the first time and Gabon's Etame grade. Despite these changes, Russia remains India's largest oil supplier, and industry insiders expect Russian oil imports to stabilize in the medium term unless further disruptions occur.

ET News