In a strategic recalibration of its energy imports, India has significantly reduced purchases of Russian crude oil for December, marking a rare retreat from its two-year trend of discounted Russian barrels. The decision comes amid intensifying U.S. diplomatic pressure and ongoing trade negotiations in Washington, where energy alignments have emerged as a key discussion point.
According to industry sources, at least five major Indian refiners, including Bharat Petroleum and Hindustan Petroleum, have opted against placing December loading orders from Russian suppliers. Only Indian Oil Corporation and Nayara Energy are reported to have retained minimal cargo commitments. The move follows recent U.S. sanctions on Russian energy giants Rosneft and Lukoil, alongside a tariff escalation on Indian exports signalling Washington’s tightening stance on nations facilitating Moscow’s oil revenues.
For New Delhi, the decision reflects a delicate balancing act between economic pragmatism and geopolitical prudence. While Russian crude has helped India contain inflation and stabilize fuel prices, sustained dependence risked diplomatic friction with the West. Analysts suggest India may temporarily pivot to Middle Eastern and U.S. suppliers to safeguard its refining continuity while maintaining a neutral strategic posture.
This shift underscores how energy trade has become an instrument of geopolitical negotiation, forcing India to navigate the fine line between affordable energy security and strategic autonomy.
