India’s Russian oil imports to drop in Jan as RIL halts deliveries; stricter sanctions impact trade with New Delhi.
Reliance Industries has confirmed it expects no Russian crude deliveries throughout January 2026. This move is projected to slash India’s total imports of
Russian oil has fallen to its lowest levels in years.
The announcement follows a warning from US President Donald Trump on 4 January 2026 regarding potential tariff hikes on Indian goods. Washington previously doubled import tariffs on Indian products to 50 percent last year to penalise the continued purchase of Russian energy.
The shift marks a significant pivot in India’s EXIM strategy as New Delhi prioritises a trade deal with the US. Key impacts include:
- Trade negotiations: Indian authorities are now requiring refiners to provide weekly disclosures of oil sources to facilitate smoother talks with Washington.
- Import slump: National imports of Russian crude are expected to dip below 1 million barrels per day (bpd) this month, a sharp decline from the June peak of 2 million bpd.
- Sanction pressure: Stricter Western sanctions have already restricted flows, with December figures hitting a three-year low of 1.2 million bpd.
While Reliance has paused procurement, state-run refiners Indian Oil Corp and Bharat Petroleum Corp, alongside Russia-backed Nayara Energy, remain the primary remaining channels for Russian supply. However, the overall reduction underscores the government’s effort to balance energy security with vital international trade relations.
SOURCE – BUSINESS STANDARD
