India’s state-owned refiners have reduced their imports of Russian crude oil by nearly 45% between June and September 2025, according to data from energy analytics firm Kpler. The sharp decline follows persistent payment bottlenecks, freight complications, and narrowing discounts, which have made Russian barrels less attractive compared to Middle Eastern grades.

Kpler’s data shows that combined Russian crude imports by Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) fell from approximately 1.5 million barrels per day in June to around 820,000 bpd in September. The drop comes even as private refiners like Reliance Industries and Nayara Energy maintained steady offtake levels, leveraging more flexible payment mechanisms.

The shift highlights India’s growing focus on diversifying crude sources, especially amid fluctuating shipping costs and currency conversion issues linked to sanctions. Analysts suggest that if price differentials widen again, Indian state refiners could resume higher purchases. However, for now, refiners appear to be balancing cost efficiency with geopolitical caution, optimizing refinery runs with more stable Middle Eastern and U.S. crude flows.