India pauses Russian oil deals: US trade pressure forces policy rethink
Oil refinery in India (illustrative photo: Getty Images)
Indian oil refineries have urgently halted purchases of Russian oil following the sweeping tariffs on Indian goods imposed by US President Donald Trump, Bloomberg reports.
Sources confirmed to the outlet that Indian state-owned oil refineries have begun rejecting purchases of Russian oil. This is due to the United States exerting pressure on India through harsh tariffs in an effort to force the Indian government to stop trading with Russia.
Major Indian companies — Indian Oil, Bharat Petroleum, Hindustan Petroleum, and others — plan to change their oil procurement strategies in the upcoming cycle. One of these companies recently purchased a large batch of oil from the United States, Brazil, and Libya.
At the same time, it is noted that New Delhi has not officially issued any instructions to refineries to stop buying oil from Russia. Publicly, the government of Prime Minister Narendra Modi, which maintains good relations with the Russian regime, has stated that it will resist Trump's tariffs.
Indian refining companies are awaiting guidance from the government after the United States imposed an additional 25% tariff on Indian goods. The new measures were introduced in response to India's continued imports of Russian oil.
On August 6, Trump signed an executive order imposing additional 25% tariffs against India. The reason cited was India's ongoing purchases of Russian oil. These tariffs are in addition to the 25% duties on Indian goods that came into effect in the US on August 1.
India's Ministry of External Affairs has already responded to the new measures, beginning to justify the need for purchasing Russian oil. Meanwhile, the US insists that the 25% tariffs are only the beginning of a broader pressure campaign on buyers of Russian oil.
