Reuters: Indian firms pull back from new Russian oil deals

Indian refiners are steering clear of Russian oil purchases for April deliveries and are expected to continue avoiding such trades beyond that period, according to refining and trading sources — a shift that could support New Delhi’s efforts to secure a trade agreement with Washington.

The United States and India moved closer to a trade deal on February 6, announcing a framework they aim to finalise by March, which would reduce tariffs and expand economic cooperation between the two countries, Reuters reports.

Indian Oil, Bharat Petroleum and Reliance Industries have declined offers from traders for Russian oil loading in March and April, a trader familiar with the discussions said. Refining sources noted, however, that these companies had already scheduled some Russian crude deliveries for March. 

Most other Indian refiners have already stopped buying Russian oil. The three refiners and the oil ministry did not respond to requests for comment.

While the joint US-India statement outlining the trade framework made no reference to Russian oil, President Donald Trump lifted the 25% tariffs he had imposed on Indian goods over New Delhi’s purchases of Russian crude. Trump said the decision followed India’s commitment to stop importing Russian oil “directly or indirectly.”

New Delhi has not publicly announced any plan to halt Russian oil imports.

India emerged as the largest buyer of discounted Russian seaborne crude after Russia’s invasion of Ukraine in 2022, triggering backlash from Western countries that imposed sanctions on Moscow’s energy sector to curb its revenue and constrain its ability to finance the war.

Sources said last month that India was preparing to cut Russian oil imports to below 1 million barrels per day by March, with volumes eventually dropping to 500,000–600,000 bpd, down from an average of 1.7 million bpd last year. Imports of Russian crude peaked above 2 million bpd in mid-2025.

As they reduce reliance on Russian supplies, Indian refiners have increased purchases from Middle Eastern, African and South American producers.

By Jeyhun Aghazada