India’s crude oil imports from Russia may see a sharp fall in January, with Reliance Industries saying that it does not expect to receive any Russian crude shipments. This could bring down India’s oil imports from Russia to a multi-year low.After Russia’s invasion of Ukraine in 2022, India became the largest buyer of discounted Russian crude shipped by sea. Those purchases have drawn criticism from Western countries, which have imposed sanctions on Russia’s energy sector, arguing that oil earnings support Moscow’s military campaign.Last year, the United States raised tariffs on Indian exports to 50% in response to India’s Russian oil imports. Despite this, New Delhi and Washington remain engaged in negotiations for a possible trade agreement, although the talks have at times been strained.
India’s Crude Imports From Russia Expected To Dip
Reliance Industries said on Tuesday that it does not anticipate receiving any shipments of Russian crude in January. The clarification comes from the country’s largest buyer of Russian crude last year and the operator of the world’s biggest refining complex, amid renewed pressure from the US.Also Read | Trump’s fresh tariff threat: Will stopping Russian oil imports ease US pressure on India? Time for a clear callThe statement followed comments by US President Donald Trump on Sunday, when he warned that the United States could impose additional import duties on India over its continued purchases of Russian oil.In a post on X, Reliance said its Jamnagar refinery has not taken delivery of Russian crude for roughly the past three weeks and does not expect any such cargoes in January. The company also rejected a media report published last week claiming that three tankers carrying Russian oil were en route to the Jamnagar facility.Authorities have asked oil refiners to provide weekly updates on their purchases of crude from Russia and the United States, according to people aware of the development, Reuters reported last week.Those familiar with the matter said India’s intake of Russian crude is expected to fall below one million barrels a day as New Delhi works toward finalising a trade agreement with Washington.Tighter sanctions imposed by the US and the European Union have already curtailed Russian oil shipments to India. In December, imports slipped to about 1.2 million barrels per day, the lowest level in three years, based on information from sources and data provider Kpler. This is a decline of nearly 40 percent from the peak of around two million barrels per day recorded in June.With Reliance Industries stepping back from purchases, Russian crude deliveries to India in January are likely to be confined to Russia-backed Nayara Energy and state-owned refiners Indian Oil Corporation and Bharat Petroleum Corporation, according to early data from LSEG.Government sources cited by Reuters said Nayara Energy, which runs a refinery with a capacity of 400,000 barrels per day, is expected to remain the principal Indian buyer of Russian crude, as its supply options are limited following EU sanctions that prompted other suppliers to withdraw.
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