India barely cuts Russian oil imports despite new US tariffs — Bloomberg
Photo: India to reduce purchases of Russian oil under pressure from the US (Getty Images)
India's oil refineries, which are among the largest buyers of Russian oil, plan to reduce purchases in the coming weeks, according to Bloomberg.
This is a partial concession to Washington amid pressure and the upcoming US tariff hike. At the same time, India is signaling that it has no intention of severing ties with Moscow.
According to sources, state-owned and private refiners, including Reliance Industries, will purchase between 1.4 and 1.6 million barrels per day starting in October. For comparison, the average volume in the first half of the year was 1.8 million barrels per day.
US pressure and tariffs
The Donald Trump administration is seeking to reduce the trade deficit with India and has increased pressure on the country's energy ties with Russia. The doubling of US tariffs to 50% will take effect on August 27.
Sources note that purchase volumes may change if India reaches a trade agreement with the US. It also depends on whether Washington will ease pressure on India over financing Russia's war against Ukraine.
Company reactions and criticism from Washington
India's Ministry of Petroleum, Reliance, Nayara Energy, and state-owned companies Indian Oil, Bharat Petroleum, and Hindustan Petroleum did not respond to requests for comment.
Since the end of last month, Donald Trump has been openly criticizing India for increasing its purchases of Russian oil. Until 2022, they were minimal, but now the country purchases 37% of Moscow's total oil exports, according to Kasatkin Consulting.
Increased pressure from US
Representatives of the US administration have also stepped up public criticism of Indian oil companies. The US authorities have targeted the country's largest energy players.
On Monday, the US Department of Homeland Security released a draft notice doubling tariffs on Indian imports to 50%. The new rules will take effect on August 27.
