India's largest refiners have stopped accepting Russian crude oil for March and April loading as New Delhi moves closer to a trade deal with Washington, Reuters reports, citing a trade source. The shift comes after US President Donald Trump rescinded tariffs he had imposed on Indian goods over Russian oil purchases, claiming India had committed to stop importing Russian oil. New Delhi, however, has made no public announcement of any such halt.
Indian Oil, Bharat Petroleum, and Reliance refuse Russian crude offers
Indian Oil, Bharat Petroleum, and Reliance Industries are not accepting offers from traders for Russian oil loading in March and April, a trader who approached the refiners told Reuters. The three refiners had already scheduled some Russian crude deliveries for March, refining sources said. Most other Indian refiners have also stopped buying Russian crude.
India's foreign ministry framed the pullback as strategic diversification.
"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 for the world's most-populous nation, a spokesperson said.
Indian refiners have been sourcing more oil from Middle Eastern, African, and South American countries as they cut back on Russian purchases. The refiners may change their plan and place orders for Russian oil only if the government advises them to, sources said.
Trump claims India "committed" to halting Russian oil
The US and India moved closer to a trade pact on 6 February, announcing a framework they hope to finalize by March. The framework would lower tariffs and deepen economic cooperation.
Although the joint US-India statement did not mention Russian oil, Trump rescinded his 25% tariffs on Indian goods. He said New Delhi had "committed to stop directly or indirectly" importing Russian oil. New Delhi has not confirmed this.
Trump's order also stated that US officials would monitor Indian oil procurement and recommend reinstating tariffs if India resumed purchases from Russia.
