India Reduces Russia Oil Imports

India's merchandise imports from Russia plummeted by 40.48% to $2.86 billion in January 2026, primarily due to a significant reduction in crude oil purchases by Indian refiners. This decline follows intense pressure from the United States, which had imposed punitive tariffs on India for its continued purchase of Russian crude oil, citing Russia's war in Ukraine. In a new interim trade framework, the United States withdrew these tariffs after India committed to halting direct or indirect imports of Russian oil and agreed to increase purchases of US energy products. Indian refiners, including Reliance Industries, have confirmed stopping Russian crude deliveries and are now evaluating increased purchases from alternative suppliers like Venezuela and the United States. This shift marks a recalibration of India's energy sourcing strategy amid evolving geopolitical pressures and is expected to deepen in the coming months.