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India’s top refiner has said it will “recalibrate” Russian oil imports in line with government guidelines as US President Donald Trump steps up pressure on New Delhi to stop buying oil from Moscow.
Reliance Industries, which operates the world’s largest refining complex in the western city of Jamnagar, said it would adjust its purchases based on advice given by the Indian government.
“Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to government of India guidelines,” said the company.
Prior to Russia’s full-scale invasion of Ukraine, India imported a small amount of Russian crude oil. But since February 2022 it has grown to become the biggest market for Russian seaborne crude, according to ship tracking data compiled by Kpler.
Trump has repeatedly said this month that Indian PM Narendra Modi promised him India would stop buying Russian oil, in a move that could ease tension between the two nations and result in Washington lowering tariffs.
Since August, Trump administration officials have been accusing Indian companies of profiting from Moscow’s war while both countries are locked in trade talks.
On Wednesday, the US imposed sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, aiming to “degrade” Vladimir Putin’s war chest and support Trump’s effort to end the Ukraine conflict.
“We encourage our allies to join us . . . and adhere to these sanctions,” said Treasury secretary Scott Bessent.
A person familiar with the discussions between New Delhi and local refiners said the Indian government had privately asked the companies, including state-run ones, to start cutting down on Russian oil imports.
The imports of discounted Russian oil have created significant gains for Indian oil refiners, including Reliance, which is owned by Asia’s richest man Mukesh Ambani.
Over the past three years, Reliance has been one of the biggest beneficiaries of Russian oil, earning a windfall of about $6bn due to the discounted price, according to data and analysis consultancy Energy Aspects.
India’s oil ministry and state-run company Indian Oil did not reply to a request for comments.
Trump said last week that Modi could not stop buying the oil “immediately”, but that a “process had started”.
Analysts were sceptical that Indian refiners would significantly cut Russian imports. “If India is importing 40 per cent from Russia, they can come down to 30 per cent. Likewise for the companies,” said Harshraj Aggarwal, an oil and gas analyst at Yes Securities in Mumbai, adding that Russia will remain a supplier to India.
Reliance Industries and the Rosneft-linked Nayara Energy have taken most of the Russian barrels in India. Nayara, which had already been under sanctions imposed by the EU and the UK, has not been included on the US sanctions list. New Delhi has in the past protested against “unilateral” curbs.
Moscow’s ties to New Delhi are underpinned by a strategic relationship that dates back to the cold war. Putin is expected to meet Modi in India in December during an India-Russia summit.
India’s foreign ministry spokesperson Randhir Jaiswal reiterated that, as a “significant importer” of oil, India needed to ensure “stable energy prices and secure supplies”. He added that the country would diversify energy sources “as appropriate”.
Indian government data shows that since 2022 the country has bought discounted Russian oil worth about $140bn, which Reliance and others have processed into petrol and diesel for sale in domestic and international markets.
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