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

Indian refiners are set to significantly reduce Russian oil imports due to new U.S. sanctions on major Russian producers, impacting India's trade deals. Reliance Industries, the largest buyer, and state refiners aim to comply with U.S. regulations, which may affect India's broader economic ties.

Indian refiners are poised to significantly reduce imports of Russian oil to align with new U.S. sanctions on Russia's primary producers, industry insiders revealed on Thursday. This strategic shift could potentially remove a major obstacle to a trade agreement with the United States.

India has become the leading importer of discounted Russian crude, importing approximately 1.7 million barrels per day after Russia's 2022 invasion of Ukraine. The U.S. sanctions, targeting Lukoil and Rosneft, aim at trimming this dependency.

Companies like Reliance Industries, the top Indian buyer of Russian crude, plan to cut imports under long-term agreements with Rosneft. India's state refiners are also reviewing their transactions to ensure compliance with the sanctions, setting the stage for a dramatic reduction in Russian oil imports.