Purchase of Russian oil by India refiners have been hit after Washington's sanctions last month targeting Russia's oil supply chain, which caused tanker freight rates to soar as some buyers and ports in China and India avoided sanctioned ships. Indian companies take delivery of oil at their import destination, not at the port of export, Jain said.

U.S. sanctions on Russia should not affect Moscow's oil trade with India, Pavel Sorokin, Russia's first deputy energy minister, said on Tuesday, while adding it was too early to assess the impact of the latest restrictions.