Indian Refiners Scale Back Russian Oil Imports as U.S.-India Trade Deal Advances

Indian refiners are increasingly avoiding purchases of Russian crude oil for delivery in April and potentially beyond, a strategic shift that could support New Delhi’s efforts to finalize a trade agreement with the United States. According to refining and trading sources, major state-owned and private refiners have stopped accepting new offers for Russian oil loading in March and April, signaling a broader pullback from Russian energy supplies.

This move comes as the U.S. and India announced a framework for a bilateral trade pact, which they aim to conclude by March. The proposed deal seeks to reduce tariffs and strengthen economic cooperation between the two nations. While the official statement did not explicitly mention Russian oil, U.S. President Donald Trump said he rescinded a 25% tariff on Indian goods after India “committed” to halting direct or indirect imports of Russian crude.

Indian Oil Corporation, Bharat Petroleum Corporation, and Reliance Industries have reportedly declined new Russian oil offers, though some deliveries scheduled earlier for March will still proceed. Most other Indian refiners have already stopped buying Russian crude, unless directed otherwise by the government. The oil ministry and the refiners have not publicly commented on the matter.

India has not formally announced a ban on Russian oil imports. A foreign ministry spokesperson emphasized that diversifying energy sources in line with market conditions and global dynamics remains central to India’s energy security strategy. Since Russia’s invasion of Ukraine in 2022, India became the largest buyer of discounted Russian seaborne crude, benefiting from lower prices amid Western sanctions.

Russian oil imports into India have since declined sharply. Sources indicate India plans to reduce imports below 1 million barrels per day by March, eventually falling to 500,000–600,000 bpd, down from an average of 1.7 million bpd last year. Imports peaked above 2 million bpd in mid-2025 but fell to a two-year low in December.

As Indian refiners cut back on Russian oil purchases, they are increasing imports from the Middle East, Africa, and South America, reshaping the country’s crude sourcing strategy while balancing geopolitics, trade negotiations, and energy security.