India to Slash Russian Oil Imports Amid New U.S. Sanctions

Indian refiners are set to significantly cut Russian oil imports following new U.S. sanctions on Russian producers, potentially smoothing the path for a trade deal with the U.S. The move is aimed at reducing high tariffs on Indian exports. Reliance and other refiners are complying with government directives.

Indian refiners are preparing to significantly reduce imports of Russian oil to adhere to new U.S. sanctions on major Russian producers, according to industry sources. This shift might ease India's path towards a trade agreement with the United States.

India currently faces hefty 50% tariffs on its exports to the U.S., half of which are retaliations for Russian oil purchases. These could be adjusted in a potential trade deal if India scales back its crude imports from Moscow. Since Russia's 2022 Ukraine invasion, India has become the largest buyer of discounted Russian crude.

Reliance Industries, India's leading importer of Russian oil, is deciding whether to reduce or stop its imports altogether. The recalibration aligns with Government of India directives. Other major refineries are reviewing documents to cease direct supply from sanctioned Russian companies, like Rosneft and Lukoil. The U.S. Treasury has given companies until November 21 to comply with the sanctions, affecting India's future purchases.

(With inputs from agencies.)