Indian Private Refiners Take 80% of Russia’s Urals Oil in 2025

So far in 2025, India has taken 80% of Russia’s seaborne exports of its flagship Urals oil, highlighting its expanding significance in the world’s energy markets. By itself, Reliance Industries and Nayara Energy, two private refiners, absorbed about half of Russia’s exports. Their buying spree, which is motivated by long-term agreements and reduced rates, is a reflection of the changing Russian oil import strategy for Indian private refineries. This has changed market access and competition. This comes as Chinese teapots face internal challenges and state-run Indian refiners struggle with currency constraints and rising spot market premiums.

Reliance and Nayara Reshape India’s Russian Oil Import Strategy

With 77 million barrels imported so far in 2025, Reliance Industries has emerged as the biggest importer of Urals globally. It might get up to 500,000 barrels a day under a ten-year deal with Russia. Compared to just 10% in 2022, Urals currently account for 36% of Reliance’s entire crude intake. Nayara Energy comes in second, with 72% of its oil purchases this year coming from Urals, up from 27% three years ago. These shifts highlight the deepening Indian private refinery Russian oil import strategy, amid global geopolitical adjustments and pricing advantages.

Meanwhile, China’s once-dominant teapot refiners are scaling back. Their ability to compete has been limited by a more stringent tax system and weak domestic demand. Due to currency restrictions and a lack of long-term agreements, Indian Oil, Bharat Petroleum, and Hindustan Petroleum, state-owned refiners in India, continue to lag. The discount that these companies now pay for Urals has decreased from $4 to less than $2 a barrel. In addition to changing India’s crude flows, the spike in private demand is also readjusting the dynamics of oil prices globally.

Private Buyers Squeeze Out State Firms in Oil Trade

The dominance of Reliance and Nayara has tightened Urals supply for India’s state-run refiners. Without term deals and with limited currency flexibility, these public firms have seen their market access dwindle. Hindustan Petroleum, for instance, is now diversifying with cargoes from Gabon and the Republic of the Congo to avoid overdependence. According to Kpler analyst Yan Rong Fong, OPEC+ is preparing to regain market share, which could improve flows from Saudi Arabia and other Middle Eastern exporters. The Indian private refinery Russian oil import strategy is influencing not just the discount levels but also the global allocation of barrels. It is increasingly difficult for public-sector buyers to compete on price and access as private refiners secure long-term, strategic volumes.

Currency Limitations and Competition Reshape Oil Flows

While Reliance and Nayara gain leverage through strategic agreements, public refiners remain caught between currency restrictions and reduced market flexibility. The narrowing discount to Dated Brent has directly impacted Indian Oil and its peers. Their limited scope to negotiate has eroded their price competitiveness. As India rises as Russia’s biggest customer, the Indian private refinery Russian oil import strategy becomes central to its energy security and trade influence. This new trade landscape is drawing global attention and may provoke policy changes to level the playing field between public and private energy players in India.

What’s Next: Oil Policy May Tilt Toward Balance

With India’s private refiners driving most Russian oil imports, the government may face increasing pressure to support state-owned companies. Broader diversification, increased flexibility in payments, or policy incentives could follow. The Indian private refinery Russian oil import strategy will continue defining how India navigates both geopolitical risk and global market transitions in 2025 and beyond.