NEW DELHI: India is preparing to significantly cut imports of Russian crude oil in response to new US sanctions on Russia’s top oil producers, Lukoil and Rosneft, industry sources said on Thursday. The move marks a major policy shift and could help pave the way for a potential trade deal with Washington.
The decision follows mounting US pressure and the imposition of 50% tariffs on Indian exports, half of which were introduced in retaliation for India’s continued purchase of Russian oil. In exchange for scaling down crude imports from Moscow, New Delhi is negotiating to bring these tariffs in line with other Asian nations.
Since Moscow’s invasion of Ukraine in 2022, India has become the largest buyer of discounted Russian seaborne crude, importing around 1.7 million barrels per day in the first nine months of 2025.
Private sector giant Reliance Industries, India’s biggest importer of Russian oil, reportedly plans to reduce or suspend its purchases, including shipments under its long-term deal with Rosneft. “Recalibration of Russian oil imports is ongoing, and Reliance will be fully aligned with Government of India guidelines,” a company spokesperson said.
State-run refiners — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — are also reviewing supply contracts to ensure compliance, industry insiders confirmed.
“There will be a massive cut, though imports won’t fall to zero immediately,” said a refinery source, adding that some Russian barrels might still enter the market through intermediaries.
The sanctions, the first imposed by President Donald Trump’s second term, underscore Washington’s renewed hardline stance against Moscow over its actions in Ukraine.
“If the Trump administration follows through on enforcement, refiners seeking to maintain access to US capital markets will likely abandon Russian barrels,” noted Helima Croft, an analyst at RBC Capital Markets.
By Reuters
