Indian refining companies are reportedly avoiding the purchase of crude oil from Russia, potentially aiding India's trade aspirations with the United States.
According to sources quoted by Reuters, Indian refineries have decided to stop purchasing crude oil from Russia. This significant shift comes as India aims to bolster its trading relationship with the United States. Last week, the U.S. and India reached an agreement framework for a trade deal, which is expected to be formalized in March. This newly developing trade landscape may offer economic benefits to India while distancing its energy sector from Russian oil imports.
The recent trade discussions between the U.S. and India also include provisions for reducing customs duties. Reports indicate that India is set to cease its Russian oil purchases and instead increase its oil imports from the United States. This comes in the wake of U.S. President Donald Trump's imposition of a 25% additional tariff on Russian oil purchases from India last year, highlighting the economic pressures facing Indian refiners. However, the latest trade framework does not specifically address Russian oil imports but represents a shift in Indian policymakers’ stance towards U.S. energy.
Notably, three major refineries in India are reportedly no longer accepting bids for Russian oil shipments, further indicating the shift in strategy. As these refiners pivot away from Russian sources, it also signifies a broader geopolitical shift in energy dependencies and emphasizes the importance of U.S.-India relations in shaping future energy policies and trade agreements.
