Indian refiners are stepping back from purchasing Russian oil for delivery in April and are expected to avoid such trades for a longer period, industry and trading sources said, a development that could support New Delhi's efforts to finalise a U.S. trade pact.
The U.S. and India on Friday announced a framework for a trade agreement they aim to finalise by March, intended to lower tariffs and strengthen economic ties. Although the joint statement on the framework did not mention purchases of Russian crude, the move coincides with a pullback by several Indian refiners from offers for Russian barrels.
A trader who approached the refiners said Indian Oil, Bharat Petroleum and Reliance Industries are not accepting offers for Russian oil loading in March and April. Refining sources cautioned that these same refiners had already scheduled some Russian deliveries in March, indicating a partly overlapping set of commitments and new abstentions. Sources added that most other refiners have also stopped buying Russian crude.
The three state-affiliated refiners and the oil ministry did not respond to requests for comment. When the trade minister was asked about Russian crude purchases on Saturday, the minister directed queries to the foreign ministry. A foreign ministry spokesperson responded: "Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy" to ensure energy security for the world's most populous nation.
President Donald Trump rescinded his 25% tariffs on Indian goods, tariffs he had imposed in relation to Russian oil purchases, saying New Delhi had "committed to stop directly or indirectly" importing Russian oil. New Delhi has not issued any formal declaration to halt purchases of Russian crude.
India became the top buyer of discounted seaborne Russian crude after the Russian invasion of Ukraine in 2022, drawing criticism from Western governments that targeted Russian energy with sanctions designed to reduce Moscow's revenues. Since that shift, Indian intake of Russian oil has fluctuated, with sources indicating the country’s imports fell to their lowest level in two years in December.
One regular buyer, the Russia-backed private refiner Nayara, relies solely on Russian crude for its 400,000-barrel-per-day refinery. Sources said Nayara may be permitted to continue Russian purchases because other crude sellers curtailed transactions after the European Union sanctioned the refiner in July. A separate source familiar with Nayara's operations said the company does not plan to import Russian crude in April because of a month-long refinery maintenance outage. Nayara did not respond to an email seeking comment.
Industry sources said Indian refiners could reverse course and place orders for Russian barrels only if instructed by the government. Under President Trump's order, U.S. officials are to monitor Indian purchases and could recommend reinstating the tariffs if India resumes procuring Russian oil.
Recent internal estimates circulated among market participants suggested India was preparing to reduce Russian oil imports to below 1 million barrels per day by March, with volumes eventually declining to around 500,000-600,000 barrels per day. These projections contrast with an average of 1.7 million barrels per day last year and peak imports that exceeded 2 million barrels per day in mid-2025.
As Russian crude purchases have tapered, Indian refiners have been sourcing more oil from the Middle East, Africa and South America. Trade and industry data show the shift in suppliers has been a notable feature of recent flows into the world's third-largest oil consumer and importer.
Summary
Major Indian refiners are declining offers for Russian crude planned for March and April deliveries amid the U.S.-India trade framework announcement. Although some March cargoes remain scheduled and a Russia-dependent private refiner may continue to receive shipments, the broader refining sector is pulling back from Russian purchases while diversifying supplies.
Key points
- Indian Oil, Bharat Petroleum and Reliance Industries are not taking offers for Russian oil loading in March and April, according to a trader who approached the refiners; most other refiners have also stopped buying Russian crude - sectors affected: refining, international trade.
- The U.S.-India trade framework aims to lower tariffs and deepen economic cooperation; President Trump rescinded a 25% tariff on Indian goods tied to Russian oil purchases after saying India had "committed to stop directly or indirectly" importing Russian oil - sectors affected: trade policy, tariffs, energy markets.
- Nayara, a Russia-backed private refiner that uses only Russian crude for its 400,000-bpd facility, is an outlier and is not planning April imports due to a planned month-long maintenance shutdown - sectors affected: downstream refining, crude supply chains.
Risks and uncertainties
- Policy uncertainty - Indian refiners may resume Russian purchases if instructed by the government, creating potential volatility for oil trade flows and for markets tracking sanctions and tariff reinstatement risks - sectors affected: energy trading, geopolitics.
- U.S. enforcement risk - U.S. officials retain the authority to monitor purchases and recommend reinstating punitive tariffs if India restarts Russian procurement, posing downside risk to bilateral trade and tariffs-sensitive sectors - sectors affected: international trade, exports.
- Supply transition risk - Refiners shifting to Middle Eastern, African and South American crude may face logistical or pricing challenges as they rebalance their sourcing, impacting refining margins and input-cost pass-through - sectors affected: refining margins, downstream product markets.