CaliToday (16/10/2025): In a significant geopolitical shift with major implications for global energy markets, some of India's key oil refiners are preparing to gradually reduce crude imports from Russia, according to three sources familiar with the matter. The move comes as New Delhi faces immense pressure from the United States to sever its energy ties with Moscow as part of a broader strategy to end the war in Ukraine.
The pressure campaign appeared to culminate this week when U.S. President Donald Trump made a direct and public claim about the outcome of his discussions with Indian Prime Minister Narendra Modi.
"So I was not happy that India was buying oil, and he (Modi) assured me today that they will not be buying oil from Russia," Trump told reporters at a White House event on Wednesday.
However, New Delhi's official response on Thursday was more circumspect, carefully avoiding any direct confirmation of Trump's assertion. Instead, India's Ministry of Foreign Affairs emphasized its focus on domestic economic stability.
"It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective," the ministry said in a statement.
This high-stakes energy diplomacy is unfolding against the backdrop of critical trade negotiations, with Indian officials currently in Washington. The U.S. has wielded significant economic leverage, having previously doubled tariffs on Indian goods. U.S. negotiators have made it clear that a reduction in Russian oil purchases is a crucial precondition for lowering those tariffs and securing a favorable trade deal.
Since Russia's invasion of Ukraine in February 2022, India and China have emerged as the top two destinations for Russian seaborne crude, capitalizing on steep discounts after Western nations imposed sanctions and shunned Moscow's oil.
On the ground in India, the reality is more complex. Sources at major Indian refineries, who spoke on condition of anonymity, confirmed they have not yet received any formal directive from the government to halt Russian oil purchases. They stressed that any reduction would have to be gradual.
"It would be impossible to just stop immediately," one source stated. "A sudden switch would create a scramble for other crudes, which would drive up global oil prices and threaten to stoke inflation at home."
Data for the first six months of the current fiscal year (April to September 2025) already indicates a subtle but deliberate pivot. While Russia remains India's top supplier, its share of India's total oil imports has declined to 36% from 40% in the same period a year earlier, with volumes averaging 1.75 million barrels per day (bpd).
Simultaneously, India is diversifying its sources. Imports of U.S. crude rose 6.8% year-on-year to about 213,000 bpd, now constituting 4.3% of total imports. More significantly, the share of oil from traditional Middle Eastern partners has climbed to 45% from 42% a year ago.
While carefully avoiding any commitment to cutting Russian supply, India's foreign ministry spokesperson, Randhir Jaiswal, acknowledged discussions with Washington. "The current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing," he said.
India now finds itself performing a delicate balancing act, caught between the economic imperative of securing discounted energy to fuel its massive economy and the strategic necessity of maintaining a strong relationship with the United States. The coming months will be critical in revealing how one of Russia's most important economic lifelines navigates the immense pressure from its most powerful trading partner.
