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India volition restrict crude lipid purchases from Russia and bounds imports lone to cases wherever supplies are irreplaceable, arsenic portion of a broader knowing reached with the United States to unafraid little commercialized tariffs, sources quoted by quality bureau PTI claimed.While nary contiguous broad prohibition is planned, Indian refiners volition not spot caller orders for Russian crude erstwhile existing contractual commitments are honoured, the sources said.The determination follows US President Donald Trump’s announcement that Washington would trim reciprocal tariffs connected Indian goods to 18 per cent from 25 per cent. Trump said the tariff alleviation was linked to India agreeing to halt buying Russian oil, little tariff and non-tariff barriers, and perpetrate to purchasing an further $500 cardinal worthy of US energy, technology, cultivation products and different goods implicit time.The knowing efficaciously removes an further 25 per cent punitive tariff that had been imposed implicit India’s Russian lipid purchases, bringing down the applied US tariff connected Indian exports from 50 per cent to 18 per cent and providing important alleviation to exporters.
Refiners to upwind down, nary caller Russian orders
Indian refiners, which emerged arsenic the world’s second-largest purchaser of Russian crude aft Moscow’s penetration of Ukraine successful February 2022, volition proceed to honour acquisition commitments made earlier the announcement but volition not spot caller orders thereafter, 3 radical with cognition of the substance said, arsenic per PTI.
State-run refiners specified arsenic Hindustan Petroleum Corporation Ltd (HPCL), Mangalore Refinery and Petrochemicals Ltd (MRPL) and HPCL-Mittal Energy Ltd (HMEL) had already stopped buying Russian lipid aft the US imposed sanctions past twelvemonth connected cardinal Russian exporters. Others, including Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Ltd (BPCL), are expected to gradually upwind down their purchases.Reliance Industries Ltd, India’s biggest purchaser of Russian crude, had paused purchases precocious past twelvemonth pursuing US sanctions connected Rosneft and Lukoil. Reliance is besides apt to halt buying Russian lipid again aft the transportation of its resumed cargo of 100,000–150,000 barrels.
Nayara Energy apt exception
The lone apt objection to the regularisation is Nayara Energy. Nayara has been sanctioned by the European Union and the UK owed to its Russian links, with Rosneft holding a 49.13 per cent stake. Because of these sanctions, different large suppliers are unwilling to transact with the company, leaving it babelike connected Russian crude sourced from non-sanctioned entities, sources said.As per PTI, Nayara’s unsocial presumption was explained to US commercialized officials during talks successful December, and New Delhi whitethorn question an exemption oregon peculiar dispensation for the refinery nether the “no Russian oil” policy. Nayara is expected to proceed constricted purchases successful the adjacent term.
Trade deal, export alleviation and lipid math
Trump said India has besides agreed to import $500 cardinal worthy of US goods, including energy, agriculture and exertion products, implicit 5 years. In 2025, India exported $92 cardinal worthy of goods to the US, accounting for 20 per cent of full exports, portion imports from the US stood astatine $50 billion, oregon astir 7 per cent of full imports.India’s full lipid import measure stood astatine $180 billion, with astir 30–35 per cent sourced from Russia, compared with 20–30 per cent from Iraq, 15 per cent from Saudi Arabia, 10 per cent from the UAE and 5–10 per cent from the US.
Russian imports already declining
Russian lipid imports person been declining since US sanctions connected Rosneft and Lukoil came into force.
Imports averaged 1.2 cardinal barrels per time successful December 2025, down from a highest of 2.1–2.2 cardinal barrels per day. In January, they fell further to astir 1 cardinal barrels per time and were expected to driblet beneath that level soon. Under the caller knowing with Washington, imports could halve successful the coming months.However, marketplace analysts spot constricted contiguous impact. Sumit Ritolia, pb probe expert astatine Kpler, said the India–US commercialized woody is “unlikely to effect successful a near-term reduction” successful Russian crude imports. “Russian volumes stay mostly locked successful for the adjacent 8–10 weeks and proceed to beryllium economically captious for India’s analyzable refining system,” Ritolia was quoted arsenic saying by PTI, adding that imports are expected to stay successful the 1.1–1.3 cardinal barrels per time scope done aboriginal Q2.
Diversification and Venezuela option
Prashant Vasisht of Icra said the reported woody includes India stepping up purchases of US crude and perchance resuming imports from Venezuela. “Russian crude accounted for little than 2 per cent of Indian crude imports anterior to FY2023, truthful replacement options exist,” helium said, adding that switching to market-priced crude would rise India’s import measure by little than 2 per cent. Venezuelan crude, being dense and sour, could besides suit Indian refineries, helium noted.
Russia’s response
Meanwhile, Russia has said it has not received immoderate authoritative connection from India connected halting lipid purchases.
Kremlin spokesperson Dmitry Peskov said, “So far, we haven’t heard immoderate statements from New Delhi connected this matter”. Prime Minister Narendra Modi, portion confirming the tariff chopped arsenic a boost for “Made successful India” exports, besides did not publically notation Russian oil.Industry sources quoted by Reuters person said refiners volition request a wind-down play to conscionable existing contracts, underlining that immoderate displacement distant from Russian lipid volition beryllium gradual alternatively than abrupt.
