India's Shift in Russian Oil Imports Amid New U.S. Sanctions

Indian refiners are preparing to significantly cut their imports of Russian oil to adhere to new U.S. sanctions imposed on major Russian oil producers. The reduction is anticipated to ease negotiations for a trade deal with the United States that could decrease tariff barriers on Indian exports.

Reliance Industries, India's largest purchaser of Russian crude, along with state-owned companies, are re-evaluating their engagement with Russian oil to align with governmental policies and avoid sanctions-related penalties. The U.S. has targeted Lukoil and Rosneft, Russia’s primary oil producers, prompting a shift in import strategies from Indian refiners.

The strategic pivot will likely lead Indian refiners to seek alternative suppliers from the Middle East and beyond, though it may slightly increase India's crude oil import bill. The U.S. sanctions illustrate mounting tension between President Trump and Russian President Putin over geopolitical matters, chiefly actions in Ukraine.