India’s state-controlled refineries are set to skip Russian crude oil imports for December contracts, marking a significant shift in the nation’s energy procurement strategy. India is facing unprecedented pressure from world powers to reduce its reliance on Russian oil. This single development is hugely consequential on its own, given today’s crisis-prone geopolitical landscape.
India’s largest oil importer, Reliance Industries, has been central to this change. The firm is responsible for almost half of all Russian oil coming into India. In recent months, Indian oil refiners have slowly started to cut their purchases of Russian crude. Before the escalation of the war in Ukraine, Russian oil accounted for only 2.5% of total Indian imports. That figure jumped to approximately 35.8% in the 2024-25 time frame.
Reliance’s Jamnagar refinery has the unique distinction of being the biggest single-site refining complex in the world. It features independent units focused on domestic and export markets. Its past success and future competitiveness will lie in its refinery’s adaptability and responsiveness to the market landscape, especially as energy imports continue to shift dramatically.
India’s decision to reduce imports is in step with the pattern of increasing US sanctions and tariffs aimed at Moscow. This decision indicates a growing acknowledgment of the mounting international pressure. It follows months of pushing back by Delhi against its growing dependence on Russia for energy purchases.
Political Considerations
Negotiations for a larger bilateral trade agreement between India and the US have encountered major roadblocks. This is mainly due to India’s history of opposition to imports of Russian oil.
It appears that tensions between India and the US may be easing as India makes these moves. The White House could hardly contain its joy over India’s decision to pivot away from Russian oil. This change is indispensable to making base, real meaningful progress on US-India trade talks.
“We welcome this shift and look forward to advancing meaningful progress on US-India trade talks,” – The White House press office
Ajay Srivastava of the Global Trade and Technology Network noted that maintaining the current 25% tariff on Indian goods undermines goodwill. Failing to avert such an easily foreseeable shock would risk upending fragile trade negotiations.
“Maintaining the tariff despite India meeting US expectations undermines goodwill and risks slowing already delicate trade negotiations,” – Ajay Srivastava
Reliance has confirmed that its transition away from Russian oil was completed ahead of schedule to ensure compliance with upcoming product-import restrictions set to take effect on January 21, 2026.
Indian refiners are quickly pivoting away from Russian crude. This change has deep consequences for the home market and international trade relations. India’s energy procurement strategy is about to change dramatically. This shift will be fueled by the forces of global market competition and diplomatic pressure.