Indian state refiners stop buying Russian crude amid US tariffs, while private firms continue imports despite rising tensions. Photo/X.
A day after US President Donald Trump announced that his administration is imposing 25% tariff on India, a Reters report claimed that Indian state-run oil refiners have stopped buying crude oil from Russia over the past week.
The reports says that the move is driven by shrinking price discounts and escalating pressure from POTUS.
India, the world’s third-largest oil importer, has been the largest buyer of seaborne Russian crude in recent months. However, in the last week, four major Indian state refiners, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL), have not placed any new orders for Russian crude, sources familiar with their procurement plans told Reuters.
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Typically, these refiners purchase Russian barrels on a delivered basis but are now shifting towards alternative supplies available in the spot market. The report highlights that the refiners are actively seeking Middle Eastern grades such as Abu Dhabi’s Murban crude, alongside West African oil.
While state-run refiners have paused Russian oil purchases, private refiners like Reliance Industries and Nayara Energy continue to import Russian crude. It is important to note that state refiners collectively represent over 60% of India’s refining capacity, which totals 5.2 million barrels per day.
This change in India’s crude sourcing follows recent warnings by US President Donald Trump regarding trade penalties for countries continuing to buy Russian oil. On July 14, Trump stated, “countries that keep buying Russian oil will face 100% tariffs unless Moscow agrees to a major peace deal with Ukraine.”
Further escalating tensions, on Wednesday, Trump announced a 25% tariff on all goods imported from India starting August 1, in addition to a separate penalty targeting India’s trade with Russia, including energy and military equipment.
Trump said, “I don’t care what India does with Russia. They can take their dead economies down together, for all I care. India’s tariffs are too high, among the highest in the world. All things not good! India will therefore be paying a tariff of 25 per cent, plus a penalty for the above, starting on August first.”
India is the second-largest buyer of Russian crude after China. Russian oil’s share in India’s total imports has surged from just 0.2% before the Ukraine war to approximately 35–40% currently.
Also Read: ‘Dead Economies’: Trump Lashes Out At India, Russia After Slapping 25% Tariff, Says ‘I Don’t Care….’
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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