India's Oil Import Strategy Faces Challenges Amid New US Tariffs

Indian refiners may reduce Russian oil imports following new US tariffs and explore other sources to diversify. While Russia remains a major supplier post-Ukraine invasion, economic benefits have diminished. The US's actions align with Western sanctions, impacting Reliance and Nayara Energy significantly.

Facing heightened US tariffs, Indian refiners are reconsidering their reliance on Russian oil imports as they strive to diversify their supply sources. With President Donald Trump doubling tariffs on goods from India to penalize continued Russian imports, industry insiders reveal a potential shift to American and non-OPEC suppliers.

The decision comes amidst Russia's increased share in India's import basket post-Ukraine invasion, but diminishing discounts and global sanctions urge a reevaluation. Both Reliance Industries Ltd. and Nayara Energy, heavily reliant on Russian crude, are set to feel the pinch, as their European business faces obstacles.

India, a significant player in global oil imports, has historically relied on the Middle East for crude. Despite current ties with Russia, the scenario suggests a possible return to its pre-Ukraine war era suppliers, adapting to the global geopolitical climate governing energy trade.

(With inputs from agencies.)