Indian refiners not ordered to end Russian oil buys

Indian refiners have not received government orders to stop buying Russian crude and would need a wind-down period to fulfil existing contracts even if it came, industry sources told Reuters, underscoring uncertainty after a US-India trade deal that referenced halting such imports without specifying how or when it should happen.

US President Donald Trump, on January 2, announced a trade agreement with India that would cut US tariffs on Indian exports and included a commitment to end purchases of Russian oil, but details on implementation were not disclosed.

Despite the US statement, New Delhi has yet to issue clear instructions to refiners, who are seeking guidance on how to manage current and forthcoming shipments. Many companies have already booked crude loading in February that are scheduled to arrive in March, requiring time to complete those contracts before any import halt can be executed, Reuters said.

Market participants say India will likely slash Russian oil imports slowly rather than stop abruptly. A sudden halt, sources said, could disrupt operations, especially at Nayara Energy’s 400,000 barrels-per-day refinery, which has relied heavily on Russian grades amid broader supply reshuffles following Western sanctions.

India became one of the largest buyers of discounted Russian crude after Moscow’s invasion of Ukraine in 2022, with volumes peaking at about 2mn barrels per day. Trade data shows imports have already declined sharply, with Russia’s share of India’s crude supply falling as refineries diversify toward Middle Eastern, African and other sources.

Two other refiners have reportedly stopped new orders after filling commitments for February and March, with at least one mulling shifting March cargoes into April to cap overall Russian intake as guidance from New Delhi remains pending. Future purchases, the sources said, will depend on clear government policy.

Trump last week said that India would buy oil from Venezuela, but only Reliance and Nayara had the refining capability to process heavy crude in large volumes, Reuters added.