Indian refineries pause Russian oil purchases after Trump threats - Reuters
Photo: Putin's Indian friends have stopped buying Russian oil (Getty Images)
India's state-owned oil refiners have stopped purchasing Russian crude as of last week, largely due to narrowing price discounts and increasing pressure from the United States, Reuters reports.
According to the media outlet, Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd did not request new shipments of Russian oil, as confirmed by four sources familiar with their procurement plans.
Shifting to alternative supplies
In place of Russian oil, Indian refiners are now sourcing crude on the spot market, focusing primarily on grades from the Middle East and West Africa, with Abu Dhabi's Murban crude being a key alternative.
While private firms such as Reliance and Nayara remain the largest importers of Russian crude in India, state-owned companies control over 60% of the country's refining capacity - around 5.2 million barrels per day.
Trump's factor
US President Donald Trump's recent threat to impose 100% tariffs on countries continuing to buy oil from Russia may have influenced India's decision. Trump issued the warning on July 14, which could have added to the strategic risks Indian companies weighed.
So far, neither India's Ministry of Petroleum nor the state-run companies have commented publicly. But with rising geopolitical risk and reduced discounts, Russian crude has become significantly less attractive in India's oil market.
Earlier, the EU imposed sanctions on India's Nayara Energy, which is 50% owned by Russia's Rosneft. The move spooked shipping companies working with Nayara, many of whom have begun terminating contracts over fears of secondary sanctions.
