Indian refiners have been avoiding purchases of Russian crude for April deliveries and are expected to continue to refrain from such deals, refining and trading sources said, in a move that could help New Delhi clinch a trade deal with Washington. The United States and India are close to a trade deal they hope to conclude by March that would cut tariffs and deepen economic cooperation.
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Indian Oil (IOC.NS), Bharat Petroleum (BPCL.NS) and Reliance Industries (RELI.NS) are not accepting offers from traders to load Russian oil in March and April, a trader said, Reuters reports.
However, some refineries have already scheduled deliveries of Russian oil for March, industry sources said. Most other refineries have stopped buying Russian crude.
Although the US-India statement on the trade deal did not mention Russian oil, President Donald Trump lifted his 25% tariffs on Indian goods imposed due to purchases of Russian oil because, he said, New Delhi had “committed to directly or indirectly stop” imports of Russian oil.
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India became the main buyer of Russian seaborne crude oil at a discount after Russia's invasion of Ukraine in 2022, which provoked a negative reaction from Western countries, which imposed sanctions on Russia's energy sector aimed at reducing Moscow's revenues and complicating the financing of the war.
One of the regular Indian buyers is Russian-backed private refinery Nayara, which relies solely on Russian oil for its 400,000-barrel-per-day refinery. Sources said Nayara may be allowed to continue buying Russian oil as other crude oil sellers have stopped buying after the European Union imposed sanctions on the refinery in July.
Nayara also does not plan to import Russian crude in April due to a month-long maintenance shutdown of its refinery, a source familiar with its operations said.
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Indian refiners can change their plans and place orders for Russian oil only on the government's recommendation, the sources said. Trump's order said U.S. officials would monitor and recommend reinstating tariffs if India resumes buying Russian oil.
India is reportedly preparing to cut Russian oil imports to below 1 million barrels per day by March, with volumes eventually falling to 500,000-600,000 barrels per day, compared to an average of 1.7 million barrels per day last year. India's Russian oil imports exceeded 2 million barrels per day in mid-2025.
Consumption of Russian oil by India, the world's third-largest oil consumer and importer, fell to its lowest level in two years in December, trade and industry sources said.
It was previously reported that India had suspended new orders for Russian oil.
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