India to gradually cut Russian oil imports

India is set to gradually reduce crude oil imports from Russia following an understanding with the United States that resulted in the withdrawal of a proposed 25 per cent tariff on Indian goods. While no formal government order has been issued, refiners have been informally advised to avoid fresh purchases from Russia, sources said.

Indian refiners are expected to honour existing contracts, typically finalised six to eight weeks in advance, but new orders are likely to be curtailed. State-run refiners such as Hindustan Petroleum Corporation Ltd, Mangalore Refinery and Petrochemicals Ltd and HPCL-Mittal Energy Ltd had already stopped Russian purchases after US sanctions on major Russian exporters. Indian Oil Corporation and Bharat Petroleum Corporation are now expected to gradually wind down their imports. Reliance Industries, the country’s largest buyer of Russian crude, is also likely to stop purchases after the delivery of a pending cargo later this month.

Nayara Energy is likely to remain the sole exception. With Russian major Rosneft holding a 49.13 per cent stake, Nayara has been sanctioned by the European Union and the UK, restricting its ability to source crude from other suppliers. As a result, it may continue importing Russian oil from non-sanctioned entities, at least in the near term. Sources said this issue was explained to US officials during recent trade discussions.

India’s imports of Russian crude have already declined from a peak of 2.1 million barrels per day in May 2023 to about 1.1 million barrels per day in January 2026. Analysts expect volumes to remain steady in the short term due to existing commitments and economic considerations.