New Delhi: Indian oil refiners are increasingly avoiding purchases of Russian crude oil, signaling a cautious shift in strategy as India and the United States move closer to finalizing a bilateral trade agreement.
According to industry sources cited by Reuters, major Indian refiners have refrained from buying Russian oil scheduled for delivery in April and are waiting for clear guidance from the Indian government before making further commitments. The move comes shortly after India and the US announced a framework for a trade deal that could be finalized by March, potentially lowering tariffs and deepening economic cooperation.
State-run refiners such as Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL), along with private giant Reliance Industries, have reportedly declined offers for Russian crude loading in March and April. While some Russian oil deliveries were locked in earlier for March, most refiners have now paused fresh purchases.
Reuters reported that the refiners and India’s oil ministry did not respond to requests for comment. However, a spokesperson from India’s Ministry of External Affairs said the country’s energy strategy focuses on diversifying sourcing in line with market conditions and evolving global dynamics to ensure energy security.
Trade Deal Pressure in the Background
Although the India-US trade framework does not explicitly mention Russian oil, recent statements by former US President Donald Trump have linked tariff relief to India’s stance on Russian energy imports. Trump had previously imposed a 25% tariff on certain Indian goods, citing India’s indirect or direct imports of Russian oil, before later withdrawing it.
Trump also stated that US officials would continue monitoring India’s oil purchases, warning that tariffs could be reinstated if Russian imports rise again. In contrast, the Indian government has consistently maintained that it has no official plan to halt Russian oil imports.
Russia Was India’s Top Supplier
Following Russia’s invasion of Ukraine in 2022, India emerged as the world’s largest buyer of discounted Russian seaborne crude. This shift helped India manage fuel costs but drew criticism from Western nations that imposed sanctions on Russia’s energy sector to curb Moscow’s war revenues.
Industry data shows India’s Russian oil imports averaged around 1.7 million barrels per day (bpd) last year and crossed 2 million bpd in mid-2025. However, sources say India was preparing to reduce imports below 1 million bpd by March, with volumes potentially falling to 500,000–600,000 bpd.
By December, Russian oil consumption in India had dropped to a two-year low, as refiners increased purchases from the Middle East, Africa, and South America.
Nayara Remains an Exception
Privately owned Nayara Energy, backed by Russian interests, continues to rely almost entirely on Russian crude for its 400,000-bpd refinery. Sources said Nayara may be allowed to continue Russian purchases, especially after European Union sanctions last July discouraged alternative suppliers.
However, Nayara is not expected to import Russian crude in April due to a scheduled refinery maintenance shutdown.
Waiting for Government Signals
Industry insiders say Indian refiners could resume Russian oil orders if the government provides explicit direction. Until then, they appear to be treading carefully—balancing energy security with geopolitical and trade considerations—as India seeks to finalize a major trade agreement with the United States.