Indian refiners, including Indian Oil Corporation Ltd. and Reliance Industries Ltd., are preparing to scale back crude purchases from Russia in the coming weeks, offering a limited concession to Washington just a day before US tariffs on Indian goods are set to double. However, the move underscores that New Delhi has no intention of severing its energy ties with Moscow.
According to people familiar with the matter, who requested anonymity as they are not authorised to speak publicly, refiners are expected to lift 1.4 million–1.6 million barrels per day for October loading and beyond, compared with an average of 1.8 million barrels per day in the first half of 2025.
The Trump administration, which has intensified efforts to shrink the US trade deficit with India, has increased pressure on New Delhi’s energy relationship with Moscow. This includes a doubling of tariffs on Indian imports to 50%, effective Wednesday, following a draft notice issued by the US Department of Homeland Security on Monday.
Washington’s Pressure Campaign
President Donald Trump has repeatedly criticised India’s surge in Russian crude purchases since the start of the Ukraine conflict. From negligible imports before 2022, India now accounts for 37% of Moscow’s oil exports, according to data from Kasatkin Consulting. Trump has singled out India in recent weeks, portraying its imports as direct funding for “Russia’s war machine.”
Senior US officials have amplified this criticism, specifically targeting India’s leading refiners and energy magnates. Washington has made clear that future trade negotiations — and possible tariff relief — are closely tied to India’s willingness to scale back its engagement with Russia.
Limited Concessions, No Break in Ties
Industry insiders caution that the planned cuts are modest and may be adjusted if New Delhi reaches a broader trade deal with Washington. While refiners appear willing to curb purchases to ease short-term pressure, they are unlikely to halt imports altogether, reflecting India’s strategy of balancing strategic autonomy with commercial pragmatism.
Spokespersons for India’s oil ministry, Reliance, Nayara Energy Ltd., and state-run refiners — Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. — did not respond to requests for comment.
The developments highlight the escalating friction between Washington and New Delhi, with energy trade emerging as a central fault line in bilateral ties at a time of intensifying global geopolitical rivalry.
.png)
The opinions posted here do not belong to 🔰www.indiansdaily.com. The author is solely responsible for the opinions.
As per the IT policy of the Central Government, insults against an individual, community, religion or country, defamatory and inflammatory remarks, obscene and vulgar language are punishable offenses. Legal action will be taken for such expressions of opinion.