India will continue to acquire Russian oil in spite of Trump’s threats, according to official sources
Two Indian government officials, who did not want to be named because of the delicate nature of the issue, told Reuters on Saturday that India will continue to buy oil from Russia in spite of threats of sanctions from US President Donald Trump.
In addition to imposing a new 25% tariff on India’s exports to the United States, Trump said last month in a Truth Social post that India would also be subject to fines for buying Russian energy and weapons. Trump told reporters on Friday that he had heard that Russia will stop selling oil to India.
However, the sources stated that no adjustments will be made right away.
“These are long-term oil contracts,” according to one of the people. “It is not so simple to just stop buying overnight.”
A second source defended India’s purchases of Russian oil, claiming that the country’s imports of Russian grades had prevented a global spike in oil prices, which had stayed low despite Western sanctions on the Russian oil industry.
Russia’s crude is not directly sanctioned like Venezuelan and Iranian oil, and India is purchasing it below the EU’s current price restriction, according to the source.
On Saturday, the New York Times also reported that two senior Indian officials who were not identified stated that Indian government policy had not changed.
When Reuters requested official comments from Indian government officials regarding its plans to buy oil, they did not reply.
But India has a “steady and time-tested partnership” with Russia, according to Foreign Ministry spokesperson Randhir Jaiswal, who made this claim during a routine news briefing on Friday.
“On our energy sourcing requirements … we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances,” he explained.
Requests for comment from the White House were not immediately answered.
India’s leading supplier
In recent weeks, Trump, who has prioritized ending Russia’s war in Ukraine since taking office again this year, has shown increasing frustration with Russian President Vladimir Putin.
He has stated that until Moscow strikes a significant peace agreement with Ukraine, all U.S. imports from nations that purchase Russian oil would be subject to 100% tariffs.
With almost 35% of its total oil supply, Russia is the world’s top supplier to India, the third-largest importer and consumer of oil worldwide.
According to information given to Reuters by sources, India imported almost 1.75 million barrels of Russian oil per day between January and June of this year, an increase of 1% from the same period last year.
Trump’s threats may not deter the Indian government, however, as sources told Reuters this week that July discounts narrowed to their lowest since 2022, when sanctions were first placed on Moscow, as a result of steady demand and lower Russian exports.
Four sources told Reuters that for the past week or so, Indian Oil Corp (IOC.NS), Hindustan Petroleum Corp (HPCL.NS), Bharat Petroleum Corp (BPCL.NS), and Mangalore Refinery Petrochemical Ltd (MRPL.NS) have not sought Russian oil.
The EU has sanctioned Nayara Energy, a refinery that is mostly owned by Russian firms, notably Rosneft (ROSN.MM), a major buyer of Russian oil and an oil major.
According to Reuters last week, three ships carrying oil products from Nayara Energy have not yet released their cargoes due to the new EU restrictions, and Nayara’s CEO quit after the sanctions.
