According to recent reports, some Indian refiners are preparing to gradually reduce imports of Russian crude oil. This development follows direct pressure from the US government, which has explicitly linked the issue to ongoing trade negotiations and has imposed significant tariffs on Indian goods.
The situation escalated when US President Donald Trump claimed that Indian Prime Minister Narendra Modi had personally assured him India would stop buying Russian oil. The Indian government has not directly confirmed this assurance. In its official statements, India's Foreign Ministry has emphasized that its energy policy is guided by the "twin goals" of ensuring stable prices and secure supplies for its consumers. The ministry also confirmed that discussions are underway with the US to deepen energy cooperation, signaling a potential strategic shift.
This diplomatic pressure is not new. As early as August 2025, senior US officials publicly demanded that India end its Russian oil purchases, framing them as funding the war in Ukraine. The US has backed this demand with concrete economic measures, doubling tariffs on Indian goods to 50% as a punitive measure. US negotiators have stated that reducing Russian oil imports is a crucial precondition for lowering these tariff rates and finalizing a broader trade deal between the two nations.
For Indian refiners, an immediate halt to Russian crude is not a practical option. Industry sources indicate that a sudden switch to alternative supplies would disrupt the global oil market, drive up prices, and risk stoking domestic inflation. This has led to the current plan for a measured, gradual reduction rather than an abrupt stop.
Data shows this shift is already in motion. In the first six months of the current fiscal year (April to September 2025), India's imports of Russian crude fell by 8.4% compared to the same period last year. Russia's share of the Indian oil market declined from 40% to about 36%. To compensate, Indian refiners have increased purchases from other regions, boosting the share of Middle Eastern oil to 45% and raising imports from the United States by 6.8%.
It is important to note that, despite the planned cuts, Russia remains India's top source of imported oil. The market response has also been divided; while state-owned refiners have significantly slashed their Russian oil imports by 45%, private giants like Reliance Industries and Nayara Energy have actually increased their intake, showing the complex economic and strategic calculations at play.