Russia risks losing its biggest oil buyer, Bloomberg reports
Photo: Oil tanker (Getty Images)
Indian oil refineries plan to cut purchases of Russian crude oil. This comes after the signing of a law imposing sweeping US sanctions on purchases of Russian energy resources, Bloomberg reports.
India to replace Russian oil
India is the world's third-largest buyer of crude oil. More than half of its imports in recent months have come from Russia, the outlet reports.
However, over the past few days, major refiners have started seriously looking for alternative cargoes, according to people involved in the negotiations.
Sources said New Delhi could limit imports of Russian crude in the near future to 20-30% of the country's total imports. The move is aimed at reducing its role as the main buyer of seaborne oil supplied by Moscow.
The country will also continue negotiations with the US. After the adoption of the "bone-crushing sanctions," US President Donald Trump can now impose tariffs on countries that buy Russian oil.
India is among those countries, and its economy was already hit by similar tariffs in 2025. The restrictions were later lifted.
Russia's main oil importer
The outlet notes that Russia is the main supplier of crude oil to India. Moscow currently accounts for about 40% of the country's imports.
India's imports from Russia have already declined. They could average around 1.9 million barrels per day in September. That is more than 35% of total imports and the lowest level since April, according to Kpler.
However, replacing Russian oil will be difficult for India. A new refinery is currently being built in Rajasthan, while expanding existing plants would require a record 5.4 million barrels per day.
Finding a solution
Negotiations over Russian crude oil for November delivery are usually expected to begin in the final week of September, Bloomberg reports.
According to sources, India will monitor whether Washington applies new tariffs to all major buyers of Russian energy, including China.
The law allows the Trump administration to impose tariffs within 30 days on goods from major buyers of Russian oil. The rates could reach as high as 100%.
India has repeatedly adjusted its purchases of Russian oil for more than a year as Washington has alternately increased and eased pressure on the trade.
Earlier, RBC-Ukraine reported that on September 19, US President Donald Trump signed a law imposing "bone-crushing sanctions" on Russia that had been pushed by the late Senator Lindsey Graham.
The US can now impose tariffs of up to 100% on goods from countries that are the biggest buyers of Russian oil and gas, including China and India.
