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India’s largest private refiner, Reliance Industries, announced that it does not expect any shipments of Russian crude in January and has not received any over the past three weeks.
According to Reuters, this statement contradicts earlier media reports suggesting that three vessels carrying Russian oil were en route to Reliance’s Jamnagar refinery. As a result, imports of Russian crude into India could drop to their lowest levels in years.
Reliance was India’s largest buyer of Russian oil last year. The announcement came after U.S. President Donald Trump warned on Sunday, January 4, of potential increases in import tariffs. Reuters notes that “with Reliance halting Russian oil purchases, imports from Russia to India are expected to fall even further in January, leaving China as Russia’s only major market.”
Sanctions from the U.S. and EU have already sharply reduced Russian oil shipments to India. In December, imports fell to a three-year low of 1.2 million barrels per day, down roughly 40% from a peak of 2 million bpd in June. Sources cited by Reuters expect Indian purchases to drop below 1 million barrels per day.
Sanctions pressure on India
The U.S. has raised tariffs on most Indian goods to 50%, partly linking the additional duties to India’s purchases of Russian energy and military equipment. This has hit Indian exporters significantly.
In November, Reliance fully halted Russian oil imports in line with international sanctions but later resumed shipments. At the start of January, India requested that refiners disclose their purchases of Russian and U.S. crude as part of New Delhi’s efforts to negotiate a trade deal with Washington.
