India set to curtail Russian oil imports after new US sanctions on Rosneft, Lukoil: Report

Reliance will stop its Russian oil imports under a 500,000 barrel-per-day deal with Rosneft. Indian Oil, BPCL and HPCL are reviewing their own trade contracts.

India is set to curtail its Russian oil imports to comply with new US sanctions on two top Moscow-backed producers, Reuters reported on Thursday citing sources. That potentially removes a major hurdle to the India-US trade deal that's been in the works for months.

India imported 1.7 million barrels per day of Russian crude in the first nine months of 2025—that's 34% of total oil imports. (Reuters)

HT.com has not independently verified this news.

To begin with, Reliance Industries Ltd. will stop its Russian oil imports under a 500,000 barrel/day deal with Rosneft—one of the Moscow-backed producers slapped with fresh sanctions.

“Recalibration of Russian oil imports is ongoing and Reliance Industries will be fully aligned to Government of India guidelines,” an RIL spokesperson told Reuters when asked if the company plans to cut its Russia pipeline.

Indian state refiners including Indian Oil Corp. Ltd., Bharat Petroleum Corp. Ltd. (BPCL) and Hindustan Petroleum Corp. Ltd. (HPCL) are also reviewing documents of their Russian oil imports to ensure no supply will be coming directly from Rosneft and Lukoil, Reuters quoted sources as saying.

“There will be a massive cut. We don't anticipate it'll go to zero immediately as there will be some barrels coming into market” via intermediaries, sources told Reuters.

The change in stance comes amid discussions for a India-US trade deal. The talks have dragged on for months over New Delhi's Russian oil imports, which Washington DC says is fuelling Moscow's war in Ukraine. US President Donald Trump has slapped punitive tariffs of 50% on Indian goods as a retaliation.

According to a Mint report on 22 October 2025, India and the US are closing in on the long-pending trade deal that could slash the current tariffs for Indian exports to 15-16% from 50%. With energy and agriculture emerging as key cards at the negotiating table, India may agree to gradually reduce its imports of Russian oil, Mint quoted three people as saying.

India emerged as the biggest buyer of Russian crude after the US first imposed sanctions on Moscow over its war in Ukraine. The world's second largest oil consumer imported 1.7 million barrels per day in the first nine months of 2025—that's 34% of India’s crude imports.