Indian refiners avoid Russian oil as part of efforts to secure a trade pact with the United States by 2026, following President Trump’s decision to rescind tariffs on Indian goods.
Indian refiners, including state-owned Indian Oil Corporation and Bharat Petroleum Corporation, have stopped accepting offers for Russian crude deliveries in March and April. This move comes as New Delhi pushes for a comprehensive trade agreement with Washington, amid a decline in imports from Moscow. President Donald Trump rescinded a 25% punitive tariff on Indian imports, citing India’s commitment to halt Russian oil purchases. The shift, announced on 6 February 2026, aims to diversify India’s energy sources while strengthening bilateral ties.
The decision by Indian refiners to avoid Russian oil reflects broader geopolitical pressures and economic incentives. As South Asia’s largest economy, India’s energy choices impact regional stability, supply chains, and trade balances with major powers like the US and Russia. Reduced reliance on Russian crude could enhance energy security for neighbouring countries, including Pakistan and Bangladesh, by promoting diversified global oil flows and potentially stabilising prices in the region.
India Russian Oil Imports Decline
Data from the Indian Ministry of Commerce and Industry shows a significant drop in Russian oil imports. In December 2025, imports fell to USD 2.71 billion, down 27% from November 2025’s USD 3.72 billion. This marked the lowest level in 38 months, with Russia’s share in India’s total oil imports slipping to 24.9%. Volume-wise, India imported 5.8 million tonnes of Russian crude in December 2025, equivalent to about 1.39 million barrels per day.
January 2026 figures indicate further reduction, with imports averaging 1.215 million barrels per day, a 12% daily decline from December 2025. Provisional data from analytics firm Kpler highlights that Nayara Energy, a private refiner backed by Russian interests, accounted for 0.41 million barrels per day, while Indian Oil and Bharat Petroleum took 0.58 million and 0.19 million barrels per day, respectively. Reliance Industries imported no Russian crude in January 2026.
This trend aligns with India’s strategy to cut Russian oil imports below 1 million barrels per day by March 2026, from an average of 1.7 million barrels per day in 2025. Sources indicate eventual targets of 500,000 to 600,000 barrels per day. The decline stems from Western sanctions on Russian entities like Rosneft and Lukoil, which complicated payments and logistics for Indian buyers.
Trump Rescinds Tariffs India
On 6 February 2026, President Trump signed an executive order rescinding the 25% punitive tariff imposed on Indian goods in August 2025. The tariff targeted India’s continued purchases of Russian oil despite US sanctions related to Russia’s invasion of Ukraine in 2022. A White House official confirmed the full removal of this duty, reducing overall US tariffs on Indian imports to 18% from 50%.
Trump stated that India had “committed to stop directly or indirectly” importing Russian oil. He also claimed India would increase purchases of US products, potentially committing to USD 500 billion over time, and consider Venezuelan oil as an alternative.
The US-India joint statement, released on 6 February 2026, outlines a framework for an interim trade agreement. It reaffirms commitments to negotiations for a broader Bilateral Trade Agreement, focusing on market access, tariff reductions, and supply chain resilience. India agreed to eliminate or reduce tariffs on all US industrial goods and various agricultural products. The statement does not explicitly mention Russian oil.
US Trade Representative Ambassador Katherine Greer praised the deal, noting it creates opportunities for American farmers and entrepreneurs by opening India’s market of over 1.4 billion people. The framework aims for conclusion by March 2026, with prompt implementation of interim measures.
India US Trade Deal 2026 Implications
The push for an India US trade deal 2026 represents a pivot in New Delhi’s foreign policy, balancing energy needs with strategic partnerships. Indian refiners avoid Russian oil by turning to suppliers in the Middle East, Africa, and South America. This diversification addresses sanctions risks and aligns with US demands for trade concessions.
An Indian foreign ministry spokesperson emphasised: “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure energy security.” Commerce Minister Piyush Goyal referred questions on Russian oil to the Ministry of External Affairs, indicating coordinated government response.
For South Asia, the deal could foster economic integration. Reduced tariffs may boost Indian exports to the US, benefiting regional supply chains in textiles, pharmaceuticals, and technology. However, higher costs from non-Russian oil could pressure inflation in India, indirectly affecting trade with Pakistan and other neighbours.
Private refiner Nayara Energy, which relies on Russian crude for its 400,000-barrel-per-day capacity, plans no imports in April 2026 due to maintenance. Sources suggest it may continue limited purchases, as alternatives remain scarce post-EU sanctions in July 2025. Other refiners could resume if prices improve or government advises.
Background
India emerged as the top buyer of discounted Russian seaborne crude after Russia’s 2022 Ukraine invasion, with imports peaking above 2 million barrels per day in mid-2025. This drew US criticism, leading to the 25% tariff. The recent decline in India Russian oil imports decline predates the trade deal, driven by tighter sanctions and market shifts. OPEC regained market share in India during December 2025, as Russian volumes slumped.
The India US trade deal 2026 builds on negotiations launched by Trump and Prime Minister Narendra Modi on 13 February 2025. It addresses longstanding disputes over tariffs, intellectual property, and market access, aiming for balanced trade.
What’s Next
As Indian refiners avoid Russian oil, monitoring by US officials will determine if tariffs return. The interim agreement’s finalisation by March 2026 could unlock further concessions, including zero tariffs on select US goods. India may ramp up US oil imports to offset losses, potentially stabilising energy ties amid global uncertainties.
Indian refiners avoid Russian oil as a strategic move, but sustained diversification depends on market dynamics and diplomatic outcomes.
Published in SouthAsianDesk, February 8th, 2026
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