Indian Refiners Set To Slash Russian Oil Imports Amid Fresh US Sanctions And Trade Talks: Report

Indian refiners are reportedly preparing to sharply cut imports of Russian crude following fresh US sanctions on Moscow’s leading oil producers, a move that could ease trade tensions with Washington and pave the way for a new bilateral deal, according to industry sources cited in a Reuters report.

The step marks a significant shift in India’s energy strategy, which has relied heavily on discounted Russian barrels since 2022.

The development comes as New Delhi faces 50 per cent tariffs on exports to the United States with half those duties reportedly linked to its oil purchases from Russia.

Negotiations are under way to bring those tariffs in line with Asian peers in exchange for India scaling back its dependence on Moscow.

Privately-owned Reliance Industries, India’s largest buyer of Russian crude, is reportedly leading the move.

“Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI (Government of India) guidelines,” a company spokesperson was quoted as saying by Reuters.

The firm, which operates the world’s largest refinery complex in Jamnagar, has begun sourcing alternative cargoes from the Middle East and Brazil.

State-run refiners — Indian Oil, Bharat Petroleum and Hindustan Petroleum are also reviewing documentation to ensure no direct supplies are sourced from Rosneft or Lukoil, both recently targeted by US sanctions.

“There will be a massive cut. We don't anticipate it will go to zero immediately as there will be some barrels coming into market,” a refinery official was quoted as saying in the report.

US President Donald Trump’s administration imposed the new sanctions this week, giving companies until 21 November to wind down dealings with the Russian producers.

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