Indian refineries cut Russian oil purchases to seal deal with US - Reuters

Indian refineries are refraining from purchasing Russian oil for April delivery and are likely to maintain this pause for longer. According to industry sources, the move is related to New Delhi's desire to conclude a trade agreement with the United States. This is reported by Reuters, according to UNN.

Details

Indian refiners are avoiding Russian oil purchases for April delivery and are expected to hold off on such trades for longer, refinery and trade sources said. The move could help New Delhi clinch a trade deal with Washington. On Friday, the United States and India moved closer to a trade deal, announcing a framework agreement they hope to conclude by March, which includes tariff reductions and deeper economic cooperation.

Although the parties' statement did not mention Russian oil, US President Donald Trump announced the cancellation of 25% tariffs on Indian goods, stating that New Delhi "committed directly or indirectly to stop" importing Russian oil. India has not officially announced such plans.

Diversifying our energy sources in line with objective market conditions and evolving international dynamics is the cornerstone of our strategy

According to the publication, India became the largest buyer of discounted Russian seaborne oil after Russia's invasion of Ukraine in 2022. At the same time, India's consumption of Russian oil in December fell to a two-year low. Sources reported that the country is preparing to reduce imports to below 1 million barrels per day by March, with a further reduction to 500-600 thousand barrels per day, compared to an average of 1.7 million barrels last year. In mid-2025, imports exceeded 2 million barrels per day.

Recall

India plans to invest up to $100 billion in domestic exploration and increase refining capacity to 6 million barrels per day by 2030. This aims to reduce dependence on imports, which currently cover 85-88% of domestic oil consumption.