India’s major oil refiners are scaling back purchases of Russian crude, a move that could support New Delhi’s efforts to secure a broader trade agreement with the United States, according to refining and trade sources.
State-run refiners including Indian Oil Corporation and Bharat Petroleum, along with private giant Reliance Industries, have reportedly declined offers for Russian oil deliveries scheduled for March and April. While some shipments were already booked earlier, most refiners are now avoiding fresh Russian crude purchases.
The shift comes as India and the United States move closer to finalising a trade framework aimed at lowering tariffs and expanding economic cooperation, with both sides hoping to conclude a deal by March.
US President Donald Trump gestures as he speaks during a joint press conference with Indian Prime Minister Narendra Modi at the White House in Washington, DC, US, February 13, 2025.
Although the trade framework does not explicitly mention Russian oil, US President Donald Trump recently lifted tariffs on Indian goods, stating that New Delhi had committed to halting direct or indirect imports of Russian crude. Indian officials, however, have not formally announced a complete ban.
India became one of the largest buyers of discounted Russian oil after Moscow’s invasion of Ukraine in 2022, as Western sanctions disrupted traditional energy flows. Since then, Russian crude has played a significant role in meeting India’s energy needs.
Imports from Russia have now declined to their lowest levels in two years, with refiners increasingly sourcing oil from the Middle East, Africa and South America. Analysts say India may further reduce Russian oil imports unless directed otherwise by the government.
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