PETROLEUM Minister Hardeep Singh Puri on Wednesday said the bilateral trade deal with the US is only in its initial phase and that more clarity will emerge over time. However, he emphasised that India will continue to procure crude oil from wherever necessary to meet domestic consumer demand.
“This is a very good deal. This is not about a rigid commitment; it is about intent. I do not deal directly with trade figures, so I will not get into specific numbers,” he added. The bilateral trade deal, announced by US President Donald Trump, aims to expand trade between the two countries to $500 billion, including energy. Trump also mentioned that India has agreed to stop buying Russian oil and instead purchase significantly larger volumes from the US, and potentially from Venezuela. However, Foreign Secretary Vikram Misri told a parliamentary panel on Tuesday that India will continue to import crude oil from countries where it is available at the most competitive prices and of suitable quality, while factoring in geopolitical conditions and avoiding sanctioned sources.
Meanwhile, an official in the Union Petroleum Ministry said this marks the beginning of the agreement, with further details expected soon. The official added that the government will also hold discussions regarding the continued import of Russian crude. “It is the initial phase of the deal; things will get clarified in the coming days. I think the government will talk to the US about the import of Russian crude as well,” the official said. Industry analysts believe that Russian crude is expected to continue flowing into private refiner Nayara Energy in the near term, as it is heavily dependent on Russian crude even after being sanctioned by the European Union and the UK. According to commodity market analytics firm Kpler, any shift away from Russian barrels is likely to be gradual, negotiated, and shaped by sanctions constraints rather than abrupt or absolute.
Nayara Energy Ltd, formerly Essar Oil Ltd, operates a 20-million-tonne-per-year refinery in Vadinar, Gujarat, and runs a retail network of over 6,750 petrol stations across India. Russia’s Rosneft holds a 49.13% stake in the company. Nayara accounts for around 8% of India’s total refining capacity and supports more than 55,000 direct and indirect jobs nationwide. The company previously exported refined petroleum products — including petrol, diesel, and aviation turbine fuel — to several markets, including Europe.
However, it was sanctioned by the European Union and the UK in July 2025, after which it could no longer ship refined products such as diesel and petrol to EU countries. “Russian crude is still expected to flow to Nayara in the near term, with any shift away from these barrels likely to be gradual, negotiated, and constrained by sanctions rather than abrupt or absolute,” said Sumit Ritolia, Lead Research Analyst, Refining & Modeling at Kpler.