Located at Vadinar in Gujarat, Nayara operates India’s second-largest single-site refinery with a capacity of 20 million metric tonnes per annum. The refinery, which specialises in processing heavy crude, is majority-owned by Russia’s state-run energy giant Rosneft. Until US sanctions were imposed, the plant was almost entirely dependent on Russian crude as its primary feedstock.
Rosneft has been sanctioned by the Trump administration as part of efforts to pressure Russian President Vladimir Putin into pausing his military offensive against Ukraine. Analysts say that while Nayara would normally be considered an attractive acquisition, the US’s tough position on Russian oil could deter potential buyers unless there is a major diplomatic breakthrough on Ukraine.
With the refinery’s immediate future at stake, India is expected to continue negotiations with the US administration to allow imports of limited volumes of Russian crude. Indian refiners have already begun scaling back purchases, but a complete halt is not immediately feasible.
Observers note that refiners have booked Russian cargoes for the next eight to ten weeks, making cancellations impractical. This constraint, however, does little to ease the longer-term uncertainty surrounding Nayara.
“My sense is that India will still bargain with the US to import some amount of oil from Russia, especially for Nayara refinery,” said Prashant Vasisht, senior vice-president at ratings agency ICRA.
Energy expert Narendra Taneja echoed this view, saying India is unlikely to stop Russian oil imports altogether, though volumes may decline. “India will continue to get oil supplies from Russia for two reasons — to assert its strategic autonomy and to maintain the right optics for domestic political consumption,” he said.
Taneja added that India’s broader trade commitments with the US could also influence its energy strategy. “Since India has to make purchases of $500 billion from the US over a period of five years, imports of oil, gas and LPG are the fastest way to ramp up those numbers. Overall, that is not a bad idea, given what India expects in return — capital, technology, and greater access to American markets,” he said.
India currently imports nearly one-third of its crude oil from Russia. While purchases declined to $2.7 billion in December 2025 — the lowest monthly value in three years and nearly 27% lower than the $3.7 billion recorded in November — Russia remained India’s largest crude supplier in 2025-26.
During April to December of the fiscal year, Russian crude accounted for 31.5% of India’s total oil imports, valued at $105.1 billion, according to commerce department data.
