India's Russian Oil Imports to Plunge as Reliance Halts January Deliveries
India's imports of Russian crude oil are expected to fall sharply in January, potentially reaching a multi-year low, as Reliance Industries has confirmed it will not receive any Russian crude. This decision comes amidst growing U.S. warnings and Western criticism regarding India's substantial Russian oil purchases. The halt by Reliance, a major buyer, further reduces Russian oil flows, leaving mainly Nayara Energy and state refiners as primary importers, reflecting the impact of stricter sanctions.
India's significant imports of Russian crude oil are projected to decline steeply in January, potentially hitting their lowest level in several years. This substantial drop is primarily due to a halt in deliveries to Reliance Industries, one of India's largest private refiners, which has confirmed it will not receive any Russian crude during the month. The move by Reliance follows increasing pressure from the United States and broader Western criticism concerning India's substantial purchases of Russian oil since the conflict in Ukraine began. The situation underscores the growing impact of stricter international sanctions aimed at curbing Russia's oil revenues. While India has become a key buyer of discounted Russian oil, these recent developments signal a potential shift in purchasing patterns. Prior to this, stricter sanctions had already contributed to a reduction in overall Russian oil flows to India. With Reliance's decision to pause imports, the pool of major Indian buyers for Russian crude is expected to narrow further, primarily leaving Nayara Energy, which is partly owned by Russia's Rosneft, and various state-owned refiners as the remaining significant importers. This development will be closely watched for its implications on global oil markets, India's energy security strategy, and its diplomatic relations amidst ongoing geopolitical tensions.
