Adani Ports Ban: 5 Big Risks to India’s Russian Oil Imports

Adani Ports and Special Economic Zone (APSEZ)

Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, has decided to ban docking of shipping vessels sanctioned by the U.S. Office of Foreign Assets Control (OFAC), European Union (EU), and the U.K. This move could significantly impact the import of Russian crude oil, which forms a major part of India’s total crude imports.

Key Highlights: Adani Ports and Special Economic Zone (APSEZ)

• Impact on Russian Oil Imports:

• Russia accounts for over one-third of India’s total crude oil imports.

• Mundra port, which is part of APSEZ, handles nearly 10% of India’s total crude oil imports.
• Over 50% of crude oil arrivals at Mundra are from Russia.

• Adani Ports’ Reach:

• Operates 15 domestic ports and terminals.
• Holds 27.8% market share in India’s port sector.
• Port distribution: 6 (West Coast), 5 (South India), 4 (East Coast).

• International Pressure:

• The move is seen as a response to global sanctions pressure on Russian crude shipments.
• Compliance requirements are increasing for Indian refiners dealing with Russian oil.

Significance of Mundra Port:

• Equipped with two single-point moorings (SPM) for crude oil evacuation.
• Can handle Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs).
• Supplies crude oil to North Indian refineries, including HPCL-Mittal Energy Limited (HMEL) and Indian Oil Corporation.

Current Situation:

• Indian crude oil imports hit a 10-month low in August 2025, partly due to maintenance shutdowns at refineries.
• Nayara Energy’s Vadinar Refinery was sanctioned by the EU in July 2025, limiting its imports to only Russian crude for the first time.
• Adani’s decision adds complexity to India’s crude sourcing strategy, especially for refineries dependent on Russian oil.

Implications:

For India’s Energy Security:

• May disrupt the supply chain of Russian crude oil.
• Could increase dependency on alternative crude sources.

For Global Oil Markets:

• Significant impact on Russian oil flows to India, a key market for Moscow.
• Potential rise in global oil prices due to logistical bottlenecks.

For Refiners:

• Refineries like HMEL and Nayara may face compliance and sourcing challenges.
• Increased costs due to rerouting or sourcing crude from other nations.

Way Forward:

• India may need to diversify crude sourcing, exploring ties with Middle Eastern and African countries.
• Strategic reserves and government policies must focus on energy security amid evolving geopolitical tensions.
• Engagement in diplomatic dialogues to balance international compliance and domestic energy needs.

Conclusion:
APSEZ’s ban on sanctioned vessels represents a critical turning point for India’s crude oil imports. While it aligns with international compliance norms, it poses significant challenges for energy security, particularly due to India’s heavy reliance on Russian crude. Strategic planning and diversification will be crucial to mitigate risks.