India’s refineries and trading sources said they are avoiding Russian crude oil purchases and have decided to stay away from such trades for the long term to help New Delhi secure a trade deal with the US. India and the US announce a framework for a deal, with finalisation expected by March, to reduce tariffs and strengthen economic ties between the two countries.
Big companies, including Indian Oil, Bharat Petroleum, and Reliance Industries, are expected not to trade with Russia in the upcoming months. However, some had already scheduled their Russian oil purchases for March, and most companies have halted Russian crude oil offers.
The Commerce & Trade Minister has referred questions about Russian oil purchase to the foreign ministry. A foreign ministry spokesperson said, “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 famous country.
The statement released by India and the US on Friday did not mention Russian crude oil. However, President Trump rescinded his 25 per cent tariffs on Indian goods, imposed in response to Russian oil purchases.
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Indian refineries may resume purchasing Russian oil only if the government recommends it. Although Trump has said that US officials will monitor and recommend reimposing tariffs if India resumes oil imports from Russia.
