India Navigates Russian Oil Imports as U.S. Tariff Strategy Faces Legal Setback
Indian refiners are exercising caution with Russian crude purchases after a recent U.S. Supreme Court decision cast uncertainty over a trade agreement that was tied to tariff cuts in exchange for ending Russian oil imports.
According to people familiar with the matter, Indian processors have largely avoided booking new cargoes while seeking guidance from the government on the future direction of crude sourcing, amid a broader slowdown in Russian oil purchases following sustained pressure from the United States.
The Supreme Court’s ruling last week invalidated the use of emergency powers by former U.S. President Donald Trump to impose sweeping tariffs, complicating the existing trade pact framework that linked tariff reductions to India halting Russian crude imports. This decision may give New Delhi more flexibility in its energy strategy, industry insiders say.
Earlier this month, Trump announced a deal that would cut punitive U.S. tariffs on Indian goods from 50% to 18% if India agreed to stop buying Russian oil. Indian Prime Minister Narendra Modi acknowledged the agreement, but details on crude purchase commitments were not clarified publicly.
India became one of the world’s largest buyers of Russian oil after the invasion of Ukraine, taking up heavily discounted barrels when other major importers pulled back. At its peak, the South Asian nation was importing as much as around 2 million barrels per day.
This month, imports of Russian crude are expected to be significantly lower, with analysts forecasting further declines in March and April. Some Indian refiners have been sourcing crude from the Middle East instead, which could expose India to supply risks if geopolitical tensions escalate in that region.
With the U.S. administration urging partners to uphold existing agreements while continuing trade talks, India is balancing energy security, diplomatic ties, and economic interests as it charts its next steps in the global oil market.
Originally published on 24×7-news.com.
