India is likely to cut back its imports of Russian crude, a move that would mark a major shift in the country’s energy strategy, reported news agency Reuters.
For a nation that found discounted Russian oil too good to resist, the timing couldn’t be more crucial. With new sanctions tightening the noose around Moscow’s top energy firms, Indian refiners, from Reliance to state-owned giants, are rethinking their oil game.
The decision comes after the U.S. and its allies imposed additional sanctions on major Russian energy firms, including Rosneft and Lukoil, over the ongoing conflict in Ukraine.
Britain also sanctioned the two companies last week, while the European Union approved a 19th round of sanctions that includes a ban on imports of Russian liquefied natural gas (LNG).
Oil prices jumped by nearly 3% on Thursday as traders reacted to India’s plans to review its Russian oil imports. Brent crude futures rose by $1.94, or 3.1%, to $64.53 per barrel by 0428 GMT, while U.S. West Texas Intermediate (WTI) crude increased by $1.89, or 3.2%, to $60.39 per barrel.
Analysts said the surge was driven by fears that tighter sanctions and falling Russian exports could disrupt global supply chains. “President Trump’s fresh sanctions hitting Russia’s biggest oil houses aim squarely at choking Kremlin war revenues — a move that could tighten physical flows of Russian barrels and force buyers to re-route volumes onto the open market,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova, as quoted by Reuters.
She added that if India cuts its Russian oil purchases under U.S. pressure, “we could see Asian demand pivot toward U.S. crude, lifting Atlantic prices.”
