Our Bureau
Mumbai
A Russian crude oil tanker, previously bound for India, has made a sudden U-turn and is now idling in the Baltic Sea, signaling potential disruptions in oil trade amid newly imposed sanctions by former US President Donald Trump. The tanker, initially en route to India, appears to be affected by the harsh sanctions targeting Russia’s oil exports, impacting the established trade flows between India and Russia.
These sanctions, announced recently by the US and supported by the EU and UK, specifically target leading Russian oil companies such as Lukoil and Rosneft, which has led Indian refineries to halt fresh orders of Russian crude oil. Industry sources reveal that refiners in India are currently awaiting clarity on the sanction rules from their suppliers and the government before proceeding with new purchases.
Data shows that India’s crude imports from Russia had already declined by 8.4% year-on-year between April and September 2025, driven by reduced discounts and supply constraints. Concurrently, Indian refiners have increased crude oil imports from the United States and Middle Eastern countries to diversify their supply portfolios and navigate the complexities imposed by the sanctions.
Reliance Industries, India’s largest buyer of Russian oil, and public sector refiner Indian Oil Corporation have publicly committed to complying with the sanctions, canceling or suspending orders linked to sanctioned entities. This shift is part of India’s broader strategic move to ensure compliance with international regulations while balancing energy security.
Overall, the tanker’s detour in the Baltic Sea underscores the tangible effects of US-led sanctions on the global oil trade and highlights India’s evolving approach to its Russian crude oil imports amidst geopolitical and trade pressures.
