India cuts purchases of Russian oil amid trade rapprochement with Washington
Indications from the refining and trade sectors suggest that Indian refiners are starting to avoid buying Russian crude oil, particularly shipments scheduled for delivery in April and beyond, in a move that is expected to last longer, and could boost New Delhi’s chances of reaching a trade deal with the United States.
This trend comes in conjunction with Washington and New Delhi approaching the conclusion of a trade agreement, after the two sides announced, on Friday, the framework of an agreement that is hoped to be completed by March, aimed at reducing customs duties and expanding the horizons of economic cooperation between the two countries.
An oil market trader, in direct contact with refiners, said major companies, including the Indian Oil Corporation (IOC), Bharat Petroleum and Reliance Industries, had rejected offers to buy Russian oil for loading in March and April.
In contrast, sources in the refining sector explained that some of these refineries had already booked Russian shipments for delivery in March, while the majority of other refineries had stopped making new deals for Russian crude.
A spokesperson for the Ministry of External Affairs (MEA) said that India’s energy policy is based on diversifying supply sources in line with market conditions and international changes, with the aim of ensuring energy security for a country that is one of the most densely populated countries in the world.
Although the joint statement issued by the United States and India on the trade framework didn’t explicitly mention Russian oil, US President Donald Trump announced the cancellation of the additional 25% tariffs previously imposed on Indian imports due to New Delhi’s purchase of Russian oil, justifying this by India’s commitment to stop imports directly or indirectly.
In contrast, the Indian government hasn’t officially announced any plan to stop imports of Russian oil.
