US sanctions on major Russian oil companies have led Indian refiners to shift away from sanctioned Russian crude, but wider discounts on available Russian barrels are softening the financial blow. Indian refiners are increasingly sourcing from non-sanctioned suppliers, with recent tenders offering lower prices and assurances that the crude is not from sanctioned entities. The discounts on Russia's main oil grade have widened significantly, nearly offsetting the reduced volume of Russian imports.

Despite initial fears of rising costs, Indian refiners are maintaining stable procurement expenses by maximizing non-sanctioned imports and turning to alternative sources in the Middle East and the Americas. A well-supplied global market and hopes for peace in Ukraine are also helping keep oil prices steady. Major Indian companies, such as Reliance Industries, have stopped processing Russian crude at certain units to maintain access to European markets, in line with European Union regulations. The situation highlights the evolving dynamics of global oil trade amid ongoing geopolitical tensions and trade negotiations.