India has reportedly affirmed its intention to maintain oil imports from Russia, despite warnings from US President Donald Trump of potential penalties, according to Reuters, citing two government sources.
The penalties include a new 25% tariff on Indian exports to the US and additional sanctions for continuing to purchase Russian arms and oil.
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Despite Trump’s claims that India would cease buying Russian oil, government sources indicate no immediate changes to the existing long-term contracts.
“These are long-term oil contracts,” one source explained. “It is not so simple to just stop buying overnight.”
Another source defended India’s actions, stating that the imports of Russian grades have helped prevent a global surge in oil prices, which have remained subdued despite Western sanctions on the Russian oil sector.
Notably, Russian crude is not directly sanctioned, and India is procuring it below the price cap set by the EU.
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By GlobalDataThe Indian Foreign Ministry, through spokesperson Randhir Jaiswal, highlighted a “steady and time-tested partnership” with Russia and stressed the country’s pragmatic approach to energy sourcing. The White House has not yet commented on the matter.
Trump, who has prioritised ending Russia’s war in Ukraine, has shown impatience with Russian President Vladimir Putin and threatened severe tariffs on imports from countries buying Russian oil unless Moscow agrees to a peace deal with Ukraine.
Russia, accounting for around 35% of India’s oil supplies, is the leading supplier to the world’s third-largest oil importer and consumer.
India’s imports from Russia have slightly increased from the previous year to around 1.75 million barrels per day from January to June.
Indian state refiners, however, have reportedly halted purchases of Russian oil as discounts have diminished, with companies like Indian Oil, Hindustan Petroleum, Bharat Petroleum and Mangalore Refinery Petrochemical not seeking Russian crude recently.
Nayara Energy, significantly owned by Russian entities and a major buyer of Russian oil, faced EU sanctions, leading to the resignation of its CEO.
Furthermore, US sanctions have affected the movement of Russian oil to India, according to a separate Reuters report.
Vessels such as the Aframaxes Tagor and Guanyin, and the Suezmax Tassos, all under US sanctions, are altering their routes or remaining undischarged.
Reliance Industries, expected to receive oil from one of the sanctioned vessels, stated that neither the Guanyin nor Tassos is headed to its facilities.
