India poised to sharply cut Russian oil imports after sanctions, sources say

Reuters Yahoo News ^ | 10/23/2025 | Nidhi Verma

[marcusmaximus]

Indian refiners are poised to sharply curtail imports of Russian oil to comply with new U.S. sanctions on two top Russian producers, industry sources said on Thursday, potentially removing a major hurdle to a trade deal with the United States.

The change comes as India faces punishing 50% tariffs on its exports to the U.S. - 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 U.S. 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 said.

"Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI (Government of India) guidelines," a Reliance spokesman said in response to a query on whether the company plans to cut its crude imports from Russia.

Indian state refiners including Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are also reviewing their Russian oil trade documents to ensure no supply will be coming directly from Rosneft and Lukoil after the U.S. sanctioned the oil companies, a source with direct knowledge of the matter said on Thursday.

[BroJoeK]

Since it's independence in 1947, India has been friendly with Russia and "neutral" toward the West.

In recent decades, with increasing trade and huge trade surpluses with the West, Indians have grown warmer toward Western allies, especially when under threat from Chinese aggression.

But India is still very friendly with Russia, and if forced to choose between Russia and the West, might not automatically lean West.

If Indians do act against historical self-interest and align with the West in helping end the Ukraine War, it will be a major accomplishment for Pres. Trump and a major sacrifice for India.

[TBP]

Hindustan doesn’t want to get sanctioned itself.

[kiryandil]