Indian refiners are shunning Russian oil purchases as New
Delhi moves to deepen trade ties with the United States industry and trade
sources say. Major state and private companies including Indian Oil Bharat
Petroleum and Reliance Industries are not taking offers for Russian crude
scheduled for delivery in March and April a shift aimed at helping India seal a
U.S. trade pact that could be concluded as soon as March.
The move comes amid growing cooperation between Washington
and New Delhi which last week announced a framework agreement to lower tariffs
and expand economic cooperation. U.S. President Donald Trump has lifted a 25 %
tariff on Indian goods that was tied to India’s continued buying of Russian
crude saying India has “committed to stop directly or indirectly importing
Russian oil.”
While some refiners had earlier scheduled Russian cargoes
for March most are now expected to avoid new Russian supply deals as India
seeks to align its energy purchases with broader geopolitical and trade
objectives. However India has not officially declared an outright ban on
Russian oil imports and the country’s overall energy strategy remains focused
on commercial viability and security of supply.
One notable buyer Russia‑backed Nayara Energy traditionally
relies heavily on Russian crude but is also not planning imports in April due
to maintenance work at its refinery. Other refiners are diversifying increasingly
buying oil from the Middle East Africa and South America as Russian volumes
have declined sharply from their mid‑2025 peak.
Analysts say India’s pivot reflects broader economic and
diplomatic calculation: reducing dependence on Russian energy while securing
tariff relief and bolstering ties with Washington even as New Delhi balances
its longstanding relationship with Moscow and its own energy needs.
