Indian refiners are poised to sharply curtail imports of Russian oil to comply with new US sanctions on two top Russian producers, industry sources have said, potentially removing a major hurdle to a trade deal with the United States.
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The change comes as India faces punishing 50 per cent tariffs on its exports to the US – with half of those duties in retaliation for Russian oil purchases – and negotiates a potential trade deal that could bring those tariffs in line with Asian peers in exchange for winding down crude imports from Moscow.
India has emerged as the biggest buyer of discounted seaborne Russian crude in the aftermath of Moscow’s 2022 full-scale invasion of Ukraine, importing about 1.7 million barrels per day in the first nine months of this year.
The US sanctions target Lukoil and Rosneft, Russia’s two biggest oil producers.
Privately-owned Reliance Industries, the top Indian buyer of Russian crude, plans to reduce or cease imports of Russian oil, including halting purchases under its large long-term deal with Rosneft, people familiar with the matter have said.
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