India is looking to seal a trade deal with the US and is monitoring weekly data on crude oil purchases from Russia and America, according to a Reuters report. Oil refiners have been asked to give details of crude purchases from Russia and the United States, the report added. The move comes as New Delhi works to advance trade negotiations with Washington and anticipates that imports of Russian crude could fall below one million barrels a day.The Donald Trump administration, which has been seeking to reduce its trade imbalance with India, last year raised tariffs on Indian goods to 50%, citing India’s substantial purchase of Russian oil. While New Delhi and Washington are in talks over a possible trade agreement, the discussions have faced periodic strains.
India Monitors Crude Oil Buys From Russia
Since the start of the Ukraine conflict in 2022, India has been the largest buyer of discounted Russian seaborne oil. However, this surge in purchases has drawn criticism from Western countries, which have imposed sanctions on Russia’s energy sector on the grounds that oil revenues are supporting Moscow’s war effort.Officials quoted in the report said that the government wants clear and reliable data to share with the United States. The Petroleum Planning and Analysis Cell under the oil ministry has instructed refiners to report weekly figures for crude imports from Russia and the US.“We want timely and accurate data on Russian and US oil imports so that, when the US asks for information, we can provide verified figures instead of them relying on secondary sources,” a government official was quoted as saying by Reuters.Typically, the source of India’s crude imports is captured in monthly customs disclosures and by private data firms. The current request is the first instance of refiners being asked to submit such information on a weekly basis, the report added.Russian crude has emerged as a key sticking point in the complex trade negotiations between India and the United States. While several major economies have managed to reach agreements with Washington that eased the steep tariff levels initially imposed by US President Donald Trump, discussions with New Delhi have yet to yield a breakthrough.Talks broke down in late July after India pushed back against opening its agricultural markets to US products. Despite the setback of 50% tariffs, dialogue between Trump and Prime Minister Narendra Modi has continued and negotiations have since restarted. However, India’s continued purchases of Russian oil remain a major hurdle. Trump said in October that Modi had committed to ending imports of Russian crude, a claim New Delhi has publicly disputed, maintaining that supplies from Russia are critical to India’s energy needs.According to two government officials quoted by Reuters, refiners have not been formally directed to reduce their intake of Russian oil. Still, they and industry sources expect average imports to drop below one million barrels a day in the months ahead.Tighter sanctions imposed by the United States and the European Union have already curbed Russian shipments to India. Data from analytics firm Kpler and industry sources show that inflows fell to around 1.2 million barrels per day in December, the lowest level in three years, representing about a 40 percent decline from a peak of roughly two million barrels a day in June.
