Indian refiners are adjusting their oil imports, especially from Russia, after new US sanctions targeting major Russian oil producers. This change could help ease trade tensions with the US and may lead to a new agreement. According to a report by Reuters, the shift is significant since India has depended on discounted Russian oil since 2022.
Currently, India faces steep tariffs—about 50%—on exports to the US, with a portion tied to its oil imports from Russia. To address this, India is in talks to reduce these tariffs, possibly matching rates seen in other Asian countries, in exchange for less reliance on Russian oil.
Reliance Industries, India’s biggest buyer of Russian crude, is at the forefront of this adjustment. A company spokesperson stated they are aligning with government guidelines and have started buying oil from the Middle East and Brazil instead. Other state-run refiners like Indian Oil and Bharat Petroleum are also assessing their contracts to avoid purchasing from Russian companies like Rosneft and Lukoil, which are under US sanctions.
An official from one refinery mentioned there would be a significant cut in Russian oil imports, although they expect not all imports will cease immediately.
This situation follows the recent sanctions introduced by the Trump administration, which require companies to stop transactions with these Russian oil producers by November 21. This further complicates the global oil market, which has already been affected by various geopolitical tensions.
Interestingly, a recent survey found that nearly 60% of Indian citizens support reducing dependence on Russian energy sources due to these conflicts. As public sentiment shifts, it appears that Indian policymakers are paying closer attention to the changing landscape of international relations and energy security.
In the past, India has struggled to balance its energy needs with geopolitical pressures. The current sanctions reflect a complex history of energy diplomacy. As the world grapples with these tensions, India’s moves may set a precedent for how countries navigate energy partnerships amid global crises.
For more on these developments, you can check the full report from Reuters here.
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Reliance Industries,Rosneft,US sanctions,Crude Imports,Indian refiners,India-Russia oil trade,Lukoil
