India–US Trade Deal: Indian refiners halt new Russian oil buys as US–India trade talks advance, tariffs ease, and imports fall to multi-year lows.
Indian Refiners Avoid Russian Oil for April Deliveries as India–US Trade Framework Takes Shape (Image: Ref)
Indian refiners are avoiding fresh purchases of Russian crude oil for deliveries from April onward, a shift that trade and refining sources say could help New Delhi finalise a trade pact with Washington. The move follows a new US–India trade framework announced Friday, aimed at lowering tariffs and deepening economic cooperation by March.
State-run refiners Indian Oil Corp (IOC), Bharat Petroleum (BPCL) and private-sector major Reliance Industries are not accepting offers for Russian oil loading in March and April, according to a trader who approached the companies.
The pause in new Russian oil purchases comes as India and the United States move closer to a trade agreement. On Friday, both sides announced a framework for a deal that could reduce tariffs and expand economic ties.
Although the framework statement did not explicitly reference Russian oil, US President Donald Trump said he rescinded 25% tariffs on Indian goods because India had “committed to stop directly or indirectly” importing Russian oil.
IOC, BPCL and Reliance Industries have declined new offers of Russian crude for upcoming delivery months, trade sources said. These refiners had already scheduled some Russian oil deliveries for March, but most other Indian refiners have stopped buying Russian crude entirely.
The three refiners and India’s oil ministry did not respond to requests for comment. India’s trade minister referred queries on Russian oil to the foreign ministry.
India has not formally announced a halt to Russian oil imports. Responding to questions, a foreign ministry spokesperson said India’s strategy focuses on diversification.
“Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy,” the spokesperson said, citing the need to ensure energy security for the world’s most populous nation.
India became the largest buyer of discounted Russian seaborne crude after Russia invaded Ukraine in 2022, as Western sanctions targeted Moscow’s energy sector. Russian oil imports later surged, topping 2 million barrels per day (bpd) in mid-2025.
However, trade and industry data show India’s intake of Russian oil fell to its lowest level in two years in December, and sources said imports are now a fraction of 2025 levels.
Russia-backed private refiner Nayara Energy, which runs a 400,000-bpd refinery, has been a regular buyer of Russian oil. Sources said Nayara may be allowed to continue purchases because alternative crude suppliers withdrew after the European Union sanctioned the company in July.
However, Nayara does not plan to import Russian crude in April due to a month-long refinery maintenance shutdown, according to a source familiar with its operations. Nayara did not respond to requests for comment.
Sources said refiners may reverse course only if advised by the Indian government. Trump’s order said US officials would monitor India’s actions and could recommend reinstating tariffs if New Delhi resumes Russian oil procurement.
A: No, India has not announced a formal halt.
A: President Trump said India committed to stopping Russian oil imports.
A: No, purchases could resume if the government advises refiners to do so.
Disclaimer: This information is based on inputs from news agency reports. TSG does not independently confirm the information provided by the relevant sources.
