India, long vocal about pursuing an independent foreign policy, has stepped back from its discounted oil purchases from Russia after mounting pressure from the United States. The Modi government has reversed course, pulling away from a strategy that once delivered significant financial savings.
According to US media reports, several 10-year oil supply agreements between Indian companies and Russia have effectively become void following Washington’s new sanctions regime. Even Mukesh Ambani — a close ally of Prime Minister Narendra Modi and one of Asia’s wealthiest businessmen — has halted the purchase of Russian crude in compliance with American directives.
With Russian shipments suspended, Reliance Industries will now turn to more expensive supplies from the Middle East and possibly the United States. The company’s massive Jamnagar refinery is scheduled to run exclusively on non-Russian crude starting December 1. US analysts say the shift represents a major concession by India in favor of Washington’s strategic interests.
American reports note that India has earned billions of dollars in savings from Russian oil over the past several years. But former President Donald Trump’s newly imposed 50 percent tariff on certain imports has become a critical turning point for New Delhi.
The diplomatic strain surfaced in Dubai as well, where India publicly blamed the United States for a recent aircraft crash during the Dubai Airshow — a rare and pointed accusation. Despite such tensions, the economic stakes proved decisive.
One Indian company alone had signed Russian oil deals valued at more than $33 billion, yet New Delhi still opted to withdraw. Officials familiar with the talks say the decision reflects the high cost of jeopardizing broader US–India trade ties.
The Trump administration had already warned that continued Russian oil purchases would stall any progress on future trade agreements between the two countries. That message, analysts say, ultimately shaped India’s latest foreign-policy recalibration.
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