New Delhi: India is expected to slowly trim its crude oil imports from Russia following an understanding reached with the United States that links trade concessions to changes in energy sourcing, according to sources familiar with the development. However, officials indicated that some Russian supplies will continue in the near term, as certain refiners face constraints in replacing these barrels immediately.
The shift comes after US President Donald Trump signed an executive order on Friday withdrawing a 25 per cent tariff imposed on Indian goods. The rollback, he said, was based on assurances from New Delhi regarding a reduction in purchases of Russian oil.
People aware of the discussions said Indian refiners have not been issued any written instructions to stop buying crude from Russia. Instead, they have received informal guidance to gradually scale down procurement as alternative supply arrangements are explored. The transition is expected to be cautious, given the operational realities of refineries that have been configured to process Russian grades.
Companies such as Nayara Energy, which rely heavily on Russian crude, are believed to have limited flexibility in the short term. Adjusting to different oil blends may require technical changes and new long-term contracts, making an abrupt halt impractical.
India significantly increased its intake of discounted Russian oil after global energy markets were disrupted by the Ukraine conflict, helping cushion domestic fuel prices. Officials said the current approach aims to balance diplomatic commitments with energy security needs, ensuring that refinery operations and fuel supplies are not adversely affected.
Sources added that New Delhi is also in talks with suppliers in West Asia, Africa and the United States to diversify crude imports over time. Any reduction in Russian purchases, they said, would be phased and calibrated, allowing refiners sufficient time to adapt while maintaining stable fuel availability across the country.
