India moves away from Russian oil ahead of US trade deal — Reuters
India to continue cutting imports of Russian oil (photo: Getty Images)
Indian refineries stop purchases of Russian oil—a move that could lay the groundwork for a major trade deal between New Delhi and Washington, Reuters reports.
Read also: India's biggest importer halts Russian oil purchases, Reuters says
Indian companies' stance
Major players, including Indian Oil, Bharat Petroleum, and Reliance Industries, are currently refusing offers from traders to supply Russian oil for the spring period.
While some March shipments were pre-scheduled, no new contracts are being signed.
India's Ministry of External Affairs emphasized the country's goal of energy independence and adaptation to global market shifts.
"Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy," a ministry spokesperson said.
US factor and Trump's statements
The decision to reduce Russian imports coincides with warming relations with the US.
President Donald Trump has already removed 25% tariffs on Indian goods that had been imposed due to India's previous ties with Russia.
According to Trump, New Delhi has committed to limiting trade with Russia, including a direct or indirect halt to Russian oil imports.
Both sides are reportedly working on a framework agreement, expected to be finalized by March, that would lower tariffs and deepen economic cooperation.
Decline in Russian oil imports
Since 2022, India has been a major buyer of Russian seaborne crude, but purchases have now declined significantly.
Imports are expected to drop below 1 million barrels per day by March and may fall further to 500,000–600,000 barrels per day in the longer term.
Instead, Indian refineries are increasing purchases from countries in the Middle East, Africa, and South America.
India's shift away from Russia
India became a key energy partner for Russia following its full-scale invasion of Ukraine.
Purchasing discounted Russian crude had drawn criticism from Western countries, as the funds helped Moscow finance its war in Ukraine. However, sanctions pressure and a shift in US policy have prompted New Delhi to reassess its strategy.
India is expected to continue reducing its purchases of Russian oil and to actively turn to other suppliers. As one of the world's largest energy importers, the country is steadily implementing a diversification strategy.
By December 2025, Russian oil shipments to India had already fallen to about 1.2 million barrels per day, the lowest level in three years. Imports dropped further in January 2026, averaging around 1.12 million barrels per day.
At the same time, Russia experienced a sharp decline in crude production in December 2025, and total exports fell to their lowest level since August of that year. One key factor was India's sharp reduction in imports. Currently, China remains effectively the only major market for Russian oil.
