Author: Nidhi Verma
NEW DELHI, Feb 8 (Reuters) – Indian refiners are avoiding buying Russian oil for April delivery and are expected to stay away from such trade for longer, refining and trading sources said, a move that could help New Delhi sign a trade deal with Washington.
The United States and India moved a step closer to a trade agreement on Friday, announcing the framework for a deal they hope to reach by March that would lower tariffs and deepen economic cooperation.
Indian Oil Corp, Bharat Petroleum Corp and Reliance Industries are not accepting traders’ offers for loading Russian oil in March and April, a trader with contact with refiners said.
However, refining sources said the refineries had planned to deliver some Russian oil in March. Most other refiners have stopped buying Russian crude.
Trump says India is ‘committed’ to halting purchases
The three refineries and the petroleum ministry did not respond to requests for comment. On Saturday, the trade minister referred questions about Russian oil to the foreign ministry.
A spokesman for the Ministry of Foreign Affairs said: “Diversifying energy procurement is at the core of our strategy in line with objective market conditions and changing international dynamics” to ensure energy security for the world’s most populous country.
Although the US-India statement on the trade framework did not mention Russian oil, President Donald Trump canceled the 25% tariff on Indian goods for buying Russian oil as he said New Delhi has “committed to stop directly or indirectly” importing Russian oil.
New Delhi has not yet announced plans to halt Russian oil imports.
India became the biggest buyer of discounted Russian seaborne crude after Russia invaded Ukraine in 2022, sparking a backlash from the West, which targeted Russia’s energy sector with sanctions aimed at cutting into Moscow’s revenue and making it harder to fund the war.
India’s Russian oil imports only a fraction of 2025 levels
One regular buyer in India is Russian-backed private refiner Nayara, which produces 400,000 barrels of oil per day at its refinery and relies entirely on Russian oil. Sources said Nayara may be allowed to continue buying Russian oil as other crude sellers pull back following EU sanctions on the refinery in July.
Nayala also does not plan to import Russian crude in April due to a month-long maintenance shutdown at the refinery, a source familiar with Nayala’s operations said.
Nayara did not respond to an email seeking comment.
Sources said Indian refiners may change plans and order Russian oil only if advised by the government.
Trump’s order said U.S. officials would monitor and recommend the reinstatement of tariffs if India resumes oil purchases from Russia.
Last month there was news that India was preparing to cut Russian oil imports to less than 1 million barrels per day by March, with imports eventually falling to 500,000 to 600,000 barrels per day, compared with an average of 1.7 million barrels per day last year. By mid-2025, India’s oil imports from Russia will exceed 2 million barrels per day.
Imports of Russian oil by India, the world’s third-largest oil consumer and importer, fell to their lowest level in two years in December, data from trade and industry sources showed.
Indian refiners have been buying more oil from countries in the Middle East, Africa and South America while reducing purchases of Russian oil.
(Reporting by Nidhi Verma; Editing by William Mallard)