India has decided to reduce its imports of Russian crude oil by nearly 50%, marking a major shift in its energy policy. The move follows recent discussions between Indian and U.S. officials over trade and sanctions concerns.
According to officials, Indian refiners have started cutting orders for Russian oil to comply with new international trade expectations. This reduction will gradually reflect in the country’s oil import data over the coming months.
Pressure from the United States
The United States has been urging India to lower its dependence on Russian energy, citing the need to limit Moscow’s revenues amid the ongoing Ukraine conflict. Following several rounds of talks, Indian authorities agreed to scale back imports, particularly from state-run oil companies.
Analysts say the decision comes after Washington introduced higher tariffs on certain Indian imports. The tariff move was seen as part of a broader effort to push New Delhi toward reducing energy trade with Russia.
Impact on India’s Energy Market
India has been one of the largest buyers of discounted Russian oil since 2022. The lower prices helped stabilize domestic fuel costs, but recent global pressure and reduced discounts made Russian crude less attractive. With this cut, India may now turn to the Middle East and African suppliers to meet its oil demand.
Private refiners, however, are expected to adjust their import strategies slowly, as they continue to look for cost-effective alternatives in the global market.
Economic and Political Implications
Experts believe the reduction could increase India’s overall import bill and slightly impact fuel prices. However, officials maintain that energy supplies will remain stable and the country’s long-term strategy will focus on diversification.
The move also highlights India’s balancing act — maintaining strong ties with both Russia and the United States while ensuring national energy security.
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