Indian oil refineries will continue purchasing crude from Russia, officials have confirmed, amid mounting pressure from the United States and threats of sanctions targeting Moscow’s trading partners over its war in Ukraine.
The clarification follows reports on Friday suggesting India, one of the world’s largest energy importers, was preparing to halt Russian oil imports. US President Donald Trump appeared to endorse the idea, telling reporters, “I understand that India is no longer going to be buying oil from Russia… That is a good step.”
However, Indian government sources quickly rebutted the claim. Speaking to the ANI news agency, officials stated that there had been no directive from the government to suspend Russian imports, and that Indian oil companies continued to buy based on market factors such as price, logistics, inventory levels, and grade of crude.
“These are long-term oil contracts,” one senior official told The New York Times on Saturday. “It is not so simple to just stop buying overnight.”
Earlier in the week, reports from Reuters indicated that some Indian state-owned refineries had temporarily paused Russian oil purchases, partly in response to tariff threats from Washington and narrowing price advantages. But Indian officials insist there has been no policy shift, and that oil purchases remain fully in line with international norms.
India’s oil underscores Russia
India’s oil ministry also underscored that Russian oil is not directly sanctioned by either the United States or the European Union. Instead, it is subject to the G7-EU price cap mechanism, which seeks to restrict Russia’s revenue while ensuring stable global energy supplies.
“India’s purchases have remained fully legitimate,” one source noted, adding that without Indian uptake of discounted Russian oil, combined with the 5.8 million barrels per day production cuts from Opec+, global oil prices could have soared past the March 2022 peak of $137 per barrel, exacerbating inflationary pressures globally.
Russia currently accounts for around 35% of India’s total crude imports, making it the country’s top supplier. Indian officials maintain that as a major energy consumer, India must prioritise affordability to shield its population from rising costs.
“We look at what is available in the markets, what is on offer, and also what is the prevailing global situation or circumstances,” said Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs, on Friday.
Jaiswal reaffirmed the “steady and time-tested partnership” between India and Russia, a relationship that has become a growing source of tension with the United States. The White House announced a 25% tariff on all Indian goods this week, alongside a penalty targeting nations that continue purchasing arms or energy from Russia.
Trump, posting on Truth Social, criticised India for its long-standing reliance on Russian military equipment and its ongoing energy relationship with Moscow. “They can take their dead economies down together, for all I care,” he wrote in a follow-up post.
The president has given a deadline of 8 August for Vladimir Putin to halt the war in Ukraine or face additional sanctions, including tariffs on countries continuing to import Russian oil.
Meanwhile, Ukraine’s military reported on Saturday that it had struck several oil-related targets within Russian territory, including a refinery in Ryazan, causing a fire, and hitting an oil storage facility, drone airfield, and electronics factory.
