Indian Refineries Look to Cut Russian Oil Purchases — a Sign of Evolving South Asian Oil Ties
According to leading news agencies such as Bloomberg, some of India’s largest oil refineries are preparing to reduce their purchases of Russian crude oil in the coming weeks.
This move appears to be a diplomatic gesture ahead of the upcoming US tariff hikes, aimed at increasing pressure on Russia while simultaneously signaling that India does not intend to sever its economic ties with Moscow.
Industry sources reveal that both state and private companies, including the major player Reliance Industries Ltd, are expected to buy approximately 1.4 to 1.6 million barrels per day starting in October and into the new year.
These figures are somewhat lower than the average purchase levels recorded in the first half of 2023, which hovered around 1.8 million barrels daily.Furthermore, Russian oil refineries have experienced significant operational setbacks — losing about 17% of their capacity due to Ukrainian drone attacks and ongoing conflicts.
Experts suggest that these figures could fluctuate if India reaches a trade agreement with the Biden administration, especially if US authorities ease the sanctions pressures related to Russia’s war in Ukraine.Notably, over recent months, US officials have repeatedly criticized India for increasing its Russian oil imports, especially after the outbreak of the full-scale invasion of Ukraine, which led to a surge in the purchase volumes.
Data from Kasatkin Consulting indicates that as of 2022, India accounted for 37% of Moscow’s oil exports.
Last week, the US Department of Homeland Security proposed doubling tariffs on imports from India to 50%, aiming to curb trade.
Meanwhile, the Indian Foreign Ministry announced plans to double bilateral trade with Russia to $100 billion over the next five years and develop joint projects, signaling a continued strategic partnership despite Western pressures.