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India steps back from Russian oil as US trade pressure reshapes energy strategy
For much of the past two years, discounted Russian crude became a lifeline for India’s energy-hungry economy. Tankers flowed steadily east as refiners snapped up cheaper barrels while much of the West kept its distance. Now, that tide appears to be turning.
Fresh reports suggest several of India’s biggest refiners are no longer entertaining new offers for Russian oil scheduled for the coming months. It is not a dramatic break, but it is a noticeable shift that says a lot about how global politics still shapes what ends up in a country’s fuel tanks.
The refineries hitting pause
State-owned giants Indian Oil Corp and Bharat Petroleum, along with private sector heavyweight Reliance Industries, are among those stepping back from fresh Russian supply offers for shipments expected around March and April.
Some cargoes had already been lined up earlier, yet other buyers across the country have reportedly halted purchases entirely.
Even so, this is not a full stop. Officials have indicated that existing deals may still need time to wind down, which means Russian oil is unlikely to disappear from India’s mix overnight.
Trade politics enters the energy conversation
The timing is difficult to ignore. Washington recently moved to scrap a 25 percent tariff that had been imposed on Indian goods over its purchases of Russian crude.
The change followed a new trade framework announced by US President Donald Trump, who said New Delhi had agreed to halt buying Russian oil as part of broader negotiations.
Yet the picture remains hazy. A joint statement between the two countries did not explicitly mention Russian crude, and Indian authorities have not publicly confirmed any formal decision to end imports.
Moscow has also indicated it is unaware of any official move to cut supplies.
That ambiguity has fuelled debate across financial markets and on social media, where analysts are split between calling it a strategic pivot and a temporary diplomatic gesture.
Imports were already sliding
Even before the latest headlines, the numbers had started pointing downward. India’s purchases of Russian oil dropped to a 38-month low valued at about 2.7 billion dollars in December 2025.
Russian crude now makes up less than a quarter of India’s total supply, a notable fall from roughly 34 percent just a month earlier.
Sanctions pressure, shipping constraints, and tighter financial scrutiny have all played a role in slowing the once-booming trade.
Looking beyond Moscow for barrels
India has made it clear that it is keeping its options open. Officials have said they are willing to assess the commercial value of supplies from alternative producers, including countries such as Venezuela.
That fits a broader pattern seen over the past year, with refiners testing cargoes from Africa, the Middle East, and South America as a hedge against geopolitical risk and sanctions exposure.
For a country that imports the bulk of its crude, flexibility is less about politics and more about survival. Energy security in New Delhi often means buying wherever the balance of price, reliability, and diplomacy makes the most sense.
A strategic slowdown, not a sudden divorce
Despite the headlines, Russia remains an important supplier to India’s refineries and could continue to feature in the country’s energy basket.
What is changing is the balance. The era of aggressively chasing discounted Russian barrels appears to be giving way to a more cautious approach shaped by trade negotiations, tariff relief, and the realities of operating in a heavily sanctioned market.
In simple terms, India is not slamming the door. It is leaving it slightly ajar while it explores who else is willing to sell crude on terms that make both economic and diplomatic sense.
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Source: IOL
Featured Image: Energy Intelligence
