Indian refiners are bracing for significant changes in their crude oil procurement strategies following the imposition of US sanctions on two major Russian oil firms, Rosneft and Lukoil. These sanctions, which restrict American entities from conducting business with the sanctioned companies and threaten non-US firms with penalties for similar dealings, are set to impact nearly one million barrels of Russian crude oil that flow into India daily, accounting for a substantial portion of Indian imports. In response, Indian refiners, particularly Reliance Industries and Nayara Energy, are pivoting towards sourcing crude from alternative markets such as the Middle East, Latin America, and the United States. However, this transition is complicated by higher freight costs and potential increases in the import bill, with analysts predicting a modest rise of less than 2% annually due to shifts away from discounted Russian grades. Reliance, which currently secures a significant portion of its crude from Russia, is adjusting its operations to comply with the sanctions while exploring indirect purchasing channels through third-party intermediaries. As refiners prepare for potential supply shocks, they face the dual challenge of maintaining profitability amid rising costs and navigating the complexities of a changing global oil landscape. The situation underscores the delicate balance India must strike between its energy security needs and adherence to international sanctions, raising broader implications for the country’s energy economics and geopolitical stance.