India’s State Refiners Halt Russian Oil Purchases Amid U.S. Pressure
Indian state-run oil refiners have suspended their purchases of Russian crude over the past week, as narrowing price discounts and mounting U.S. pressure, including tariff threats from President Donald Trump, reshape the country’s oil import strategy.
The Gaze reports this, referring to Reuters.
India, the world’s third-largest oil importer, has emerged as the top buyer of Russian seaborne crude since the onset of the war in Ukraine.
However, officials at Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Mangalore Refinery and Petrochemicals (MRPL), which collectively operate over 60% of India’s 5.2 million barrels-per-day refining capacity, have recently stepped back from Russian supply deals.
The refiners, which typically acquire Russian crude on a delivered basis, are now turning to spot markets to fill the gap, prioritizing alternative grades such as Abu Dhabi’s Murban and West African blends, according to four industry insiders.
Private refiners like Reliance Industries and Nayara Energy, though still active in sourcing Russian oil, now represent a growing divergence in India’s import dynamics as state-owned firms respond more directly to geopolitical pressures.
As The Gaze reported earlier, on July 30, US President Donald Trump announced the introduction of 25 per cent tariffs on imports from India from 1 August, citing a persistent trade imbalance.
In a follow-up statement, he warned that New Delhi would also face “penalties” for its ongoing economic ties with Russia.