New Delhi, February 8: India is set to gradually reduce its oil imports from Russia as part of a new trade agreement. Sources indicate that while companies like Nayara Energy will not completely halt imports due to limited alternatives, a significant reduction is expected.
Under a recent agreement with the United States, India is likely to decrease its crude oil purchases from Russia. This follows U.S. President Donald Trump’s executive order that eliminated a 25% punitive tariff on all imports from India, which is linked to New Delhi’s commitment to curtail oil imports from Russia.
Advice to Reduce Purchases from Russia
Three sources familiar with the matter revealed that although refineries have not received formal directives to stop purchases from Russia, they have been informally advised to reduce imports. Most refineries are expected to honor prior purchase commitments made before this announcement, typically orders placed 6-8 weeks in advance, but will refrain from placing new orders thereafter.
Companies Halting Oil Imports from Russia
Hindustan Petroleum Corporation Limited (HPCL), Mangalore Refinery and Petrochemicals Limited (MRPL), and HPCL-Mittal Energy Limited (HMEL) ceased oil purchases from Russia shortly after the U.S. imposed sanctions on major Russian exporters last year. Now, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) are also expected to gradually stop their imports.
Reliance Industries Limited, India’s largest buyer, may halt Russian oil purchases after receiving a shipment of 150,000 barrels in the coming weeks. This follows their suspension of purchases after U.S. sanctions on Rosneft and Lukoil at the end of last year. Nayara Energy could be the only exception due to its 49.13% stake in Rosneft, which has led to sanctions from the EU and the UK. Consequently, Nayara is compelled to source Russian oil from entities not under sanctions.
While the Ministry of Petroleum has declined to comment on this issue, the Ministries of Commerce and External Affairs have also refrained from directly addressing India’s commitments regarding Russian oil purchases. Since the imposition of U.S. sanctions on Rosneft and Lukoil, India’s oil imports from Russia have been steadily declining.
In discussions with U.S. officials in December, Nayara’s unique position was highlighted. Sources suggest that Nayara may be exempt from the policy of not purchasing Russian oil, indicating a possibility of continued imports from non-sanctioned entities.
In December 2025, imports from Russia averaged 1.2 million barrels per day, a significant drop from the peak of 2.1 million barrels per day in May 2023. This figure fell to 1.1 million barrels in January, with expectations of dipping below 1 million barrels this month or next. Following the new agreement with the U.S., this import could be halved soon. India meets nearly 90% of its crude oil needs through imports. The discounted oil from Russia has helped reduce India’s import bill, especially after the sanctions imposed by Western nations following the invasion of Ukraine in February 2022.
According to Sumit Ritolia, head of research at Kepler, the oil coming from Russia is already contracted for the next 8-10 weeks and remains economically crucial for India’s refining system. However, Prashant Vashistha from ICRA notes that India has ample alternatives, including options from the U.S. and Venezuela.
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