India has finally yielded to U.S. pressure, deciding to stop buying Russian oil, ending a decade-long trade agreement. Reliance Industries, owned by billionaire Mukesh Ambani, will no longer import Russian crude. The move follows threats of high U.S. tariffs affecting India’s trade relations.
The U-turn means Reliance will now source expensive oil from the Middle East and possibly the United States. This shift will increase operational costs for Indian refineries, analysts say. U.S. officials described India’s decision as a significant concession.
Read more: India begins major cut in Russian oil imports after US talks
India had long claimed an independent foreign policy while earning billions from Russian oil imports. The halted contracts with Russia were reportedly worth over $33 billion. American pressure, including 50% tariffs threatened by the Trump administration, left New Delhi with little choice.
From December 1, Reliance refineries will run on non-Russian crude, according to reports. Analysts argue that stopping Russian oil helps advance U.S.-India trade negotiations and reduces geopolitical friction. The decision highlights the growing influence of U.S. sanctions in global energy markets.
Read more: India quietly edges toward compromise on Russian oil
While India loses a cheaper energy source, officials say the country seeks to maintain strong U.S. relations and trade benefits. The shift also signals to other nations that U.S. sanctions carry serious economic consequences.