Russia says India hasn't changed stance on buying oil
What's the story
Russia's foreign ministry has rejected recent United States claims that India has changed its position on purchasing Russian oil. Maria Zakharova, spokesperson for Russia's foreign ministry, said it "has no reason to believe that India has changed its position on buying Russian hydrocarbons." "India's purchase of Russian hydrocarbons benefits both countries and helps maintain stability in the international energy market," she said.
Trade benefits
US claimed India agreed to stop importing Russian oil
Zakharova's comments come after US officials claimed India had agreed to stop importing Russian oil. The issue drew attention after the US lowered tariffs on Indian goods from 50% to 18%. It had also removed a 25% tariff imposed last August over India's Russian oil purchases. US officials had claimed that after a call between Prime Minister Narendra Modi and President Donald Trump, India had agreed to stop buying Russian oil.
Import decrease
India's imports of Russian oil drop to 2-year low
India has yet to confirm or deny the claims. However, reports suggest that India's imports of Russian oil have dropped to a two-year low. According to Reuters, Russian shipments made up only 21.2% of India's total imports in January, the lowest since late 2022. This is a sharp decline from December and nearly one-third lower year-on-year. Russia had become India's top supplier after 2022 with nearly 40% market share, mostly due to discounted crude prices.
Sourcing shift
Indian refiners increase purchases from other regions
To make up for the drop in Russian oil imports, Indian refiners have increased purchases from other regions. Middle Eastern crude now accounts for about 55% of imports in January, while Latin American supplies reached a one-year high, and Saudi Arabia reclaimed its position as India's top supplier. Analysts predict Russian flows will continue to decline in the coming months but won't completely stop as India maintains its policy of "strategic autonomy" in energy procurement.