India races to find alternatives to Russian oil – Bloomberg
Photo: India is actively seeking alternatives to Russian oil (Getty Images)
Indian oil refineries are actively seeking alternative suppliers of hydrocarbons following the imposition of sanctions against Russia, according to Bloomberg.
This week, India's state-owned refineries purchased large volumes of oil, ignoring oil from Russia. Indian Oil Corp. and Bharat Petroleum Corp. purchased oil from virtually every corner of the market, including the US, Brazil, and the Middle East.
These purchases on the spot market complement supplies from long-term suppliers such as Saudi Arabia, which plans to ship about 22.5 million barrels of crude oil to India in September. According to data from analytics company Kpler, India's monthly imports from Saudi Arabia last exceeded this level in September 2024.
The meeting between US President Donald Trump and Russian dictator Vladimir Putin in Alaska on Friday will be closely watched by industry representatives, who will be looking for markers as to whether the US will ease or tighten pressure on Russian oil.
Barriers to buying oil from Russia
Indian importers who still want to buy Russian oil are facing hesitation from banking and logistics partners concerned about the prospect of Trump imposing secondary sanctions on those who support the trade.
In light of these concerns, traders said that some private players may increasingly consider buying more Russian oil through the shadow fleet.
Backgroung
Indian refineries urgently stopped purchasing Russian oil after US President Donald Trump imposed massive tariffs on Indian goods.
According to sources, Indian oil refining companies are awaiting instructions from the government following the US decision to impose an additional 25% tariff on Indian goods. The new measures are a response to the continued import of Russian oil.
At the same time, the Indian Foreign Ministry has already responded to the new measures, beginning to justify the need to purchase Russian oil.
