India likely to halt Russian oil imports amid push for US trade deal

New Delhi: Indian oil refineries are gradually avoiding crude oil purchases from Russia and are expected to stop long-term imports from Moscow, according to refining and trade sources. The move is being seen as a strategic shift aimed at strengthening India’s trade relations with the United States.

Major public and private sector refiners such as Indian Oil Corporation, Bharat Petroleum Corporation Limited and Reliance Industries have reportedly suspended purchases of Russian crude that were scheduled for shipment in March and April.

A trader dealing with several refineries confirmed that most companies have decided not to place fresh orders for Russian oil. Sources said that some of these companies had already booked Russian oil earlier, with deliveries planned for March. However, in the current scenario, many refiners have either cancelled or put on hold further procurement from Russia.

When contacted for comments, both the oil companies and the Union Ministry of Petroleum declined to respond. On Saturday, when the Union Commerce Minister was asked about the issue, he reportedly said that questions regarding oil imports should be directed to the Ministry of External Affairs.

A spokesperson from the External Affairs Ministry stated, “Ensuring energy security for the world’s most populous country requires a diversified sourcing strategy. Our approach is guided by market conditions and changing international developments.”

This indicates that India is reviewing its oil import policy in line with global geopolitical changes. Although the recent India–US trade framework does not directly mention Russian oil purchases, Washington had earlier imposed a 25 percent tariff on India, citing continued crude imports from Russia.

After announcing the new trade framework, US President Donald Trump stated that India had taken significant steps and expressed commitment to end direct or indirect oil imports from Moscow.

So far, the Indian government has not made any official announcement regarding a complete halt to Russian oil imports. However, industry insiders believe that pressure from the US and changing diplomatic priorities are influencing India’s decision.

India had sharply increased crude oil purchases from Russia after the Ukraine war began in 2022, taking advantage of discounted prices. While this helped India manage its energy needs at lower costs, several Western nations criticized the move, arguing that oil revenues were helping fund Russia’s military campaign.

One major exception could be Nayara Energy, which has been heavily dependent on Russian crude and refines nearly 4 lakh barrels per day. Last July, the European Union imposed restrictions on Nayara, prompting other suppliers to cut deliveries.

Sources suggest that Nayara may still be allowed to import limited quantities from Russia due to its specific requirements. However, it is reported that Nayara’s refinery units are currently under maintenance, and the company may not purchase any Russian oil in April. The company has not issued any official statement on the matter.

Industry sources further revealed that Indian oil companies are now waiting for clear directions from the central government before placing any new orders for Russian crude. Until such guidance is received, refiners are likely to avoid fresh purchases.

The evolving situation indicates a major shift in India’s energy policy as it balances economic interests with diplomatic relations, particularly with the United States.

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