India's largest oil refineries have suspended purchases of Russian crude for delivery in April. New Delhi took this step to secure a lucrative trade agreement with the United States.
As "Hvylya" reports, this was revealed by Reuters, citing industry sources.
According to the agency, market giants Indian Oil, Bharat Petroleum, and Reliance Industries are no longer accepting offers from traders for Russian crude shipments in March and April. While some contracts for March had been signed previously, new deals have effectively been frozen.
Most other refineries in the country have also stopped buying Russian oil. India's Foreign Ministry diplomatically attributes this decision to shifting market conditions.
"Diversifying our energy sources, in accordance with objective market conditions and evolving international dynamics, is the foundation of our strategy," a spokesperson for the Indian Foreign Ministry stated.
However, the real reason for the pivot is said to be an agreement with Washington. The US and India have agreed on a framework deal that provides for tariff reductions and a restructuring of energy ties. The parties are on the verge of signing a major trade agreement.
As a gesture of goodwill, US President Donald Trump has already scrapped an additional 25 percent tariff on Indian goods, which had been imposed earlier due to purchases of Russian oil. In return, according to journalists, New Delhi has pledged to completely cease the "direct or indirect import" of energy resources from Russia.
It was previously reported that Russia's shadow fleet is floundering.
