Indian refiners have stopped dealing with U.S.-sanctioned oil tankers and entities but the country does not expect disruption to Russian crude supplies during a two-month wind-down period, a government source said on Monday.

India’s state refiners are rushing to speed up payments for Russian crude, hoping to complete their trades before a dramatic expansion of Washington’s curbs on Moscow’s oil industry effectively comes into force next month,

Bloomberg reported that India will not allow tankers carrying Russian oil subject to American sanctions to enter its ports. This is a significant blow to Vladimir Putin's policy. The Indian market became one of the key markets for Russia after the EU decided to abandon Russian raw materials following the invasion of Ukraine.

Chinese and Indian refiners are seeking alternative fuel supplies as they adapt to severe new U.S. sanctions on Russian producers and tankers that are designed to curb the revenues of the world's second-largest oil exporter.

Russia has emerged as the top supplier of oil to India in the past three years as it offered crude at discounted prices after its invasion of Ukraine in 2022.