Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, has announced a ban on vessels sanctioned by the US, European Union (EU), and the UK, a move that could significantly disrupt the flow of Russian crude oil into India.
The ban applies across APSEZ’s network of 15 domestic ports and terminals, including Mundra port in Gujarat, which alone handles close to 10% of India’s total crude oil imports. Mundra has emerged as a crucial hub for Russian oil, with more than half of its crude arrivals in recent years coming from Russia.
According to global data and analytics firm Kpler, APSEZ’s move is seen as a response to mounting “international pressure” and could present a major challenge for Indian refiners that have leaned heavily on discounted Russian supplies.
“Mundra received nearly 400,000 barrels per day of crude oil in recent years, with Russian grades making up more than 50% of arrivals. This makes Mundra a critical gateway for Russian barrels into India, serving major refiners like HPCL-Mittal Energy (HMEL) and state-owned Indian Oil,” said Sumit Ritolia, Lead Research Analyst for Refining & Modeling at Kpler.
The Mundra facility, equipped with two single-point moorings capable of handling Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs), supplies crude to key refineries in North India.
The development comes at a time when India’s crude oil imports have already slowed. Imports fell to a 10-month low in August 2025 amid seasonal refinery maintenance and disruptions linked to sanctions on Nayara Energy’s Vadinar refinery, which was blacklisted by the EU in July. Ritolia noted that Nayara’s August supplies were limited exclusively to Russian cargoes for the first time on record.
“Adani’s decision adds a new layer of complexity to India’s crude sourcing strategy. While freight costs may rise, the bigger challenge is compliance pressure, which could force refiners to rely more on non-sanctioned vessels or seek alternative arrangements for Russian flows,” Ritolia warned.
With APSEZ commanding a 27.8% share of India’s port cargo market and six major facilities on the west coast alone, the move marks a significant development in the global oil market. Analysts expect it to reshape Russian crude shipments into India at a time when refiners are already navigating sanctions-linked challenges.
