Indian oil refiners are reportedly stepping back from buying Russian oil. This shift comes as India aims to finalize a long-awaited trade deal with the U.S., amid rising concerns and protests against the agreement.
Recently, India and the U.S. announced a framework for a trade pact, hoping to wrap it up by March. This deal aims to lower tariffs and strengthen economic ties. Both countries confirmed they are committed to ongoing negotiations.
In a related move, former U.S. President Trump had previously lifted a hefty 25% tariff on Indian imports linked to Russian oil. India has pledged not to import Russian oil directly or indirectly, but U.S. officials will monitor the situation closely and may reinstate tariffs if necessary.
India’s three largest refiners—Indian Oil, Bharat Petroleum, and Reliance Industries—are hesitating to accept offers for Russian oil in March and April. However, they have some deliveries already in the pipeline. Other refiners have generally stopped buying Russian crude as well.
Although New Delhi is feeling pressure from Washington, it still hasn’t made concrete moves to halt Russian oil imports. Following Russia’s invasion of Ukraine in 2022, India became the top buyer of discounted Russian oil, igniting criticisms from Western nations that imposed sanctions aimed at curbing Moscow’s revenues.
One noteworthy player in this context is Nayara Energy, a private refiner linked to Russia. It solely relies on Russian oil for its refinery, raising questions about its future sourcing as other suppliers pull back.
While there is focus on diversifying energy sources, including increases in oil purchases from the Middle East and Africa, New Delhi is reportedly preparing to cut Russian oil imports below one million barrels per day by March. Historical data shows that India’s Russian oil intake peaked at over 2 million barrels per day in mid-2025, a significant shift in policy from the previous year.
Protests and Public Sentiment
As India continues its efforts to finalize the trade deal with the U.S., protests are brewing at home. Farmers’ groups and opposition parties have voiced concerns that the agreement could negatively affect India’s agriculture sector by allowing more U.S. imports, even as the government insists that key staples are protected.
Critics argue that the new trade framework could disadvantage Indian farmers. They recall past protests from 2020-2021 when farmers rallied against laws aimed at deregulating agricultural markets. Leaders from the farming community worry that the deal might make India a dumping ground for U.S. agricultural products.
On the agricultural front, the agreement may open the door for imports of distillers dried grains with solubles (DDGS), which could benefit India’s poultry industry by reducing feed costs. However, it poses risks for domestic oilseed processors and soybean farmers, prompting fears over potential duty-free imports of soy oil and other goods from the U.S.
Rakesh Tikait, a farmer leader, expressed concern, stating, “Indian farmers are far more vulnerable than their American counterparts.” Politicians have joined in, warning of the long-term implications of the deal and urging caution.
Amid all this, India remains focused on securing energy supplies while navigating complex international relationships. As it works towards balancing interests at home and abroad, the outcome of these negotiations could significantly impact the country’s economic landscape.
For further details on this topic, you can refer to authoritative sources like Reuters.
