New Delhi: India is reportedly preparing to significantly reduce its imports of Russian oil following the imposition of US sanctions on two prominent Russian oil companies. This move is seen as potentially paving the way for a key trade deal with the United States.
The US sanctions have targeted Lukoil and Rosneft, both major oil producers in Russia. Reuters reported that Reliance Industries, the largest Indian consumer of Russian crude oil, plans to either terminate its long-term contract with Rosneft or substantially cut down imports. A Reliance spokesperson confirmed that the company would act in accordance with guidance from the Indian government regarding this issue.
Public sector refineries, including Indian Oil Corporation, have reportedly intensified their scrutiny of US trade documentation to ensure they are not directly purchasing oil from the sanctioned entities.
India became the world’s largest buyer of discounted Russian crude oil after the onset of the Russia-Ukraine war. The decision to reduce imports marks a significant shift in India’s energy procurement strategy amid escalating international pressure.
