India faces challenges in securing oil supplies from Russia, according to Reuters.

Indian state-owned oil refineries are exploring the possibility of purchasing crude oil on the spot market in the Middle East due to reduced supplies from their main supplier – Russia.

According to sources, writes the Reuters agency.

Three major state-owned companies – Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum – reported a shortfall of 8–10 million barrels of Russian oil that was scheduled for loading in January.

Refiners are concerned that issues with acquiring Russian oil on the spot market may persist, as demand within Russia itself is increasing, and Moscow must fulfill its obligations under the OPEC agreement.

Nevertheless, the companies note that they will be able to meet their oil needs for March from their own reserves.

Two sources also added that their companies may increase crude oil purchases from Middle Eastern suppliers as part of additional volumes under long-term contracts or announce a spot tender for high-sulfur oil.

India has become the largest importer of Russian oil after the European Union, previously the main buyer, imposed sanctions on Russian oil imports in response to Russia's invasion of Ukraine in 2022. Russia accounts for over one-third of India's energy resource imports.

Russian oil exports on spot markets have declined since November. This is attributed to Russian refineries resuming operations after the maintenance season and adverse weather conditions that hindered shipping, traders reported.

Background. Earlier, Mind reported that India plans to continue purchasing cheap oil from Russian suppliers not subject to international sanctions.