India's oil refiners are quietly backing away from Russian crude, and the timing isn't coincidental. As New Delhi and Washington work toward a trade agreement that promises lower tariffs and deeper economic ties, the country's appetite for discounted Russian barrels is cooling fast.

The Big Players Step Back

Industry sources tell Reuters that India's major refiners—Indian Oil Corp., Bharat Petroleum Corp., and Reliance Industries Ltd.—have turned down fresh offers for Russian crude scheduled for March and April. Most refiners have essentially stopped placing new orders, though some March deliveries already in the pipeline are still coming through.

It's a dramatic shift for a country that became Russia's top customer for seaborne crude after the Ukraine invasion in 2022. India happily scooped up discounted barrels while Western nations imposed sanctions, but that buying spree appears to be winding down.

The Numbers Tell the Story

Russian oil imports to India peaked above 2 million barrels per day in mid-2025. They've since dropped to around 1 million bpd in recent months, and industry watchers expect them to slide further to just 500,000-600,000 bpd by March 2026.

President Donald Trump gave India some breathing room by lifting a 25% tariff that had been slapped on Indian goods over those Russian oil purchases. His reasoning? India had "committed to stop directly or indirectly" importing Russian crude.

India hasn't formally announced a complete ban, though. A foreign ministry spokesperson kept things diplomatically vague, noting that "diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy." Translation: we'll buy what makes sense, when it makes sense.

Reliance Makes Its Move

Reliance Industries, the conglomerate run by Mukesh Ambani, was ahead of the curve. Last year, it stopped importing Russian crude into its massive Jamnagar export refinery, switching entirely to non-Russian sources by December 1.

The timing lined up with US sanctions hitting Rosneft and Lukoil—not exactly subtle political pressure. Reliance honored shipments it had already committed to but redirected future Russian barrels to India's domestic market to stay ahead of incoming EU restrictions.

This matters because Reliance was India's heavyweight champion of Russian oil imports, accounting for half the country's total. Europe received 28% of its refined product exports, so compliance with Western sanctions became a business necessity, not just a diplomatic nicety.

Other Indian refiners followed suit, planning their own cutbacks. Reliance confirmed it adjusted its shipment schedule to align with government guidelines, effectively reading the room as trade negotiations with Washington heated up.