In a significant shift in global energy dynamics, India’s state-run refiners have not purchased any Russian crude oil over the past week, Reuters reported, citing sources familiar with procurement activities. This pause marks a sharp departure in what has been one of Moscow’s most resilient energy partnerships since the onset of the Ukraine war.
Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL) — the country’s key state-owned refiners — have all reportedly held off on Russian purchases, though no official announcements have been made by either the companies or the Indian government.
India, the world’s third-largest oil importer, has emerged as the leading buyer of seaborne Russian crude over the last two years, accounting for roughly 35% of its total oil imports. Russian oil has been a major source of revenue for Moscow during its ongoing war in Ukraine.
According to the report, the pause in purchases follows two key developments: a sharp reduction in price discounts on Russian oil and renewed threats from former U.S. President Donald Trump, who warned of imposing 100% tariffs on countries continuing to buy Russian crude unless a peace deal is reached with Ukraine.
With Russian oil no longer as economically attractive as it once was — discounts have fallen to their lowest levels since 2022 — India is now turning to alternative sources such as Abu Dhabi’s Murban crude and West African grades to meet its energy needs.
While market economics remain a major factor, geopolitical pressure appears to be influencing India’s procurement choices as well. Trump’s warning, issued on July 14, signals potential consequences for nations that support Russia’s oil trade — adding another layer of complexity to India’s energy strategy going forward.
(This story is published from a syndicated feed)