Indian refineries have begun to avoid purchasing Russian oil

Indian refineries have begun to avoid purchasing Russian oil scheduled for delivery in April. They are expected to continue avoiding such transactions for some time, according to sources in the refining and trading sectors. This move could help the country conclude a trade agreement with Washington.

On Friday, the US and India moved closer to a trade agreement that would reduce tariffs and deepen economic cooperation. They hope to conclude it by March.

Indian Oil, Bharat Petroleum, and Reliance Industries are not accepting offers from traders to load Russian oil in March and April, said a trader who approached the refineries. However, these refineries have already planned some Russian oil deliveries for March. Most other Indian refineries have stopped buying Russian oil.

A spokesperson for the Indian Ministry of Foreign Affairs said in this regard: "Diversifying our energy sources in line with objective market conditions and evolving international dynamics is at the core of our strategy to ensure energy security for the world's most populous nation."

Although Russian oil was not mentioned in the US-India trade framework statement, President Donald Trump lifted 25% tariffs on Indian goods that had been imposed on purchases of Russian oil because, as he said, Delhi had "committed directly or indirectly" to stop importing Russian oil. India itself has not yet announced plans to stop importing Russian oil.

(reuters, im)