Indian refiners are steering clear of new purchases of Russian oil for delivery in April and are expected to remain cautious for longer, according to refining and trade sources, a move that could smooth the path toward a long-anticipated trade agreement with the United States. The shift comes as New Delhi and Washington announced a framework for a bilateral trade pact aimed at lowering tariffs and deepening economic cooperation, with both sides hoping to finalize the deal by March.
State-run refiners Indian Oil, Bharat Petroleum, and private-sector giant Reliance Industries are not accepting offers from traders for Russian crude loading in March and April, traders said. While some Russian oil deliveries scheduled for March will still go ahead, most Indian refiners have effectively paused fresh buying, marking a sharp change from recent years when India emerged as Russia’s largest buyer of seaborne crude.
The pullback follows mounting geopolitical pressure linked to Russia’s invasion of Ukraine and renewed scrutiny from Washington. Although the joint U.S.-India statement on the trade framework made no explicit reference to Russian oil, U.S. President Donald Trump said he rescinded 25% tariffs on Indian goods because New Delhi had “committed to stop directly or indirectly” importing Russian oil. India has not formally announced any decision to halt such imports, but the current buying behavior suggests a de facto slowdown.
India’s foreign ministry framed the shift as part of a broader strategy, emphasizing diversification of energy sources in line with market conditions and evolving international dynamics. Officials stressed that energy security remains paramount for the world’s most populous nation, even as it recalibrates supply chains amid global political pressures.
Since 2022, India had dramatically increased imports of discounted Russian crude after Western sanctions reshaped global oil flows. That strategy helped Indian refiners secure cheaper feedstock, but it also placed New Delhi at the center of geopolitical tensions as the West sought to curb Moscow’s energy revenues. At its peak in mid-2025, India’s intake of Russian oil exceeded 2 million barrels per day.
Recent data, however, show a sharp reversal. Imports of Russian crude fell to a two-year low in December, and sources say India is preparing to cut volumes below 1 million barrels per day by March, with a potential decline to 500,000–600,000 barrels per day later on. That compares with an average of 1.7 million barrels per day last year.
One notable exception is Nayara Energy, a Russia-backed private refiner that relies almost entirely on Russian crude for its 400,000-barrel-per-day refinery. Sources said Nayara may be permitted to continue sourcing Russian oil because alternative suppliers pulled back after the European Union sanctioned the company in July. Even so, Nayara is not expected to import Russian crude in April due to a scheduled month-long maintenance shutdown.
Sources cautioned that Indian refiners could resume Russian oil purchases if directed by the government, underscoring that policy considerations remain fluid. Under Trump’s order, U.S. officials are expected to monitor India’s oil procurement closely and could recommend reinstating tariffs if imports from Russia resume.
As Russian barrels recede, Indian refiners have increased purchases from the Middle East, Africa, and South America, accelerating a diversification trend that could permanently alter India’s energy mix. The shift highlights how trade diplomacy, sanctions, and energy security are becoming increasingly intertwined as India balances its economic interests with global political realities.
