India Navigates Shifting Oil Deals Amid US-Russia Tensions

New Delhi faces challenges in restructuring energy supply chains as global trade dynamics evolve.

Feb. 22, 2026 at 2:20pm

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India is navigating a complex web of oil deals and tariff policies as tensions between the US and Russia continue to impact global energy markets. With the US Supreme Court undermining key trade war instruments, Indian refiners have had to reduce Russian oil imports and increase American crude, but restructuring logistics and refining processes is proving challenging. New Delhi is now exploring purchasing Russian oil through intermediaries to maintain energy security, even as costs rise.

Why it matters

India's ability to secure stable and affordable energy supplies is a critical national interest. The shifting dynamics in global oil trade, driven by geopolitical tensions and changing trade policies, are forcing India to carefully balance its relationships with the US and Russia, its two key energy partners.

The details

Indian refiners have formally reduced their Russian oil imports and increased American crude, but volumes have held steady at around 1 million barrels per day. Restructuring logistics and refining processes to quickly replace Russian supplies is practically impossible, as Indian refineries are adapted to certain crude grades and established trade routes. To maintain energy security, India is now exploring purchasing Russian oil through intermediaries, even though costs are higher.

  • In February 2026, Indian oil import volumes from various sources held steady at around 1 million barrels per day.
  • In 2026, the US Supreme Court undermined a key trade war instrument used by the Trump administration.

The players

India

A major global economy and energy consumer seeking to maintain stable and affordable energy supplies amidst shifting geopolitical dynamics.

United States

A key energy partner for India, but also a participant in ongoing trade tensions with Russia that are impacting global oil markets.

Russia

A major global oil producer, whose exports to India are being impacted by evolving trade policies and geopolitical tensions.

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What’s next

India will likely continue to navigate the complex web of oil deals and trade policies, exploring creative solutions to maintain energy security and affordable supplies.

The takeaway

India's energy security is a delicate balancing act, as it seeks to maintain stable and affordable supplies amidst evolving global trade dynamics and geopolitical tensions. The country's ability to adapt and find innovative solutions will be crucial in the coming years.