Major Indian oil refiners, including Indian Oil, Bharat Petroleum, and Reliance Industries, are reportedly avoiding Russian crude oil purchases for April delivery. This strategic pivot comes as India and the United States move closer to finalizing a landmark trade pact aimed at lowering tariffs and deepening bilateral economic cooperation.
Indian refiners avoid Russian oil in push for US trade deal https://t.co/M6RsbLGZmr https://t.co/M6RsbLGZmr
— Reuters (@Reuters) February 8, 2026
A Strategic Shift in Energy Sourcing
Following a framework announcement on Friday, the U.S. and India hope to conclude a comprehensive trade deal by March. The shift in energy procurement is seen as a key component in stabilizing relations with Washington. While some deliveries scheduled for March will proceed, refining and trade sources indicate that most Indian refiners have ceased accepting new offers for Russian oil loading in March and April.
“Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy,” stated a spokesperson for the Indian Foreign Ministry, emphasizing the nation’s commitment to energy security while navigating a complex global landscape.
Trump Rescinds Tariffs Amid “Commitment” to Halt Imports
President Donald Trump recently rescinded 25 percent tariffs on Indian goods, which had been imposed previously over concerns regarding Russian energy imports. The President stated that the decision followed a commitment from New Delhi to stop “directly or indirectly” importing Russian oil.
While the Indian government has not made a formal public announcement regarding a total halt, data shows a significant downward trend:
- Current Projections: India is preparing to cut imports below 1 million barrels per day (bpd) by March.
- Long-term Goals: Volumes are expected to eventually fall to 500,000–600,000 bpd.
- Historical Context: This marks a sharp decline from the 2024 average of 1.7 million bpd and the mid-2025 peak of over 2 million bpd.
Diversification and Market Impact
To fill the void left by Russian supplies, Indian refiners are aggressively scaling up purchases from Middle Eastern, African, and South American producers.
A notable exception remains the Russia-backed private refiner Nayara Energy. However, even Nayara has no plans for Russian imports in April due to a scheduled month-long maintenance shutdown at its 400,000-bpd facility.
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Monitoring and Future Outlook
The U.S. administration has signaled that it will monitor India’s procurement levels closely. Under the current executive order, officials may recommend reinstating tariffs should India resume significant oil trade with Moscow. This pivot underscores India’s evolving role as the world’s third-largest oil consumer and its prioritize of a strategic partnership with the United States.
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