Indian Refiners Still Purchasing Russian Oil: New Report Emerges After Trump’s ‘Pause’ Remark
Former US President Donald Trump had described the report of India “pausing” its purchase of Russian oil as a “good step”, although India clarified that it is guided by market availability and economic considerations.
Indian oil refiners are continuing to procure oil from Russian suppliers, sources confirmed on Saturday, adding that their decisions on supply are based on pricing, crude quality, logistical feasibility, and other economic factors.
“Indian oil refiners continue to obtain oil from Russian vendors. Their sourcing decisions are determined by cost, crude grade, inventory levels, logistics, and other economic parameters,” sources informed news agency ANI.
India Reiterates Position on Russia Ties
This clarification came a day after Ministry of External Affairs spokesperson Randhir Jaiswal stated that India’s energy procurement is guided by available options in the global market.
“In securing our energy needs, we are driven by what is on offer in the international markets and by prevailing global conditions,” Jaiswal said on Friday.
He was reacting to a Reuters report that claimed Indian state-run oil companies had halted spot purchases of Russian crude during the past week due to shrinking discounts and increased geopolitical pressure.
On Friday (local time), Trump had remarked that he had “heard” India might stop buying Russian oil and termed it a “good step”.
“I understand that India is no longer going to be buying oil from Russia. That’s what I heard, I’m not sure if it’s accurate. That is a good step. We will see what unfolds,” Trump said to the media.
His comments came hours after the MEA reiterated that India’s oil procurement is based on market dynamics. Jaiswal also emphasised that India’s bilateral ties with any country should not be viewed through the lens of a third party.
“Our bilateral ties with various nations stand on their own merits and must not be seen from the perspective of any third country. India and Russia share a stable and time-tested partnership,” Jaiswal said on Friday.
Why Is India Still Buying Russian Oil?
Giving further background to India’s decision to continue purchasing oil from Russia, sources told ANI that Russia, the world’s second-largest producer of crude oil with a daily output of around 9.5 million barrels (almost 10% of global demand), is also the second-largest exporter, supplying about 4.5 million barrels of crude and 2.3 million barrels of refined products daily.
“In this complex scenario, India, being the third-largest energy consumer globally with an 85% dependence on crude oil imports, has strategically adjusted its sourcing to ensure affordable energy, while remaining fully compliant with international norms,” the sources added.
Concerns that Russian crude might be excluded from global supply chains and that regular trade routes could be disrupted had earlier pushed Brent crude prices to $137 per barrel in March 2022.
“Had India not absorbed discounted Russian crude – in the context of OPEC+ cutting 5.86 million barrels per day – global oil prices might have exceeded the March 2022 peak of $137 per barrel, worsening inflationary pressures across the world,” sources noted.
Importantly, Russian crude has never been subjected to sanctions, neither by the United States nor the European Union.
Indian Oil Marketing Companies (OMCs) have refrained from purchasing crude from Iran and Venezuela – countries actually under US sanctions. These OMCs have always adhered to the US-imposed price cap of $60 per barrel for Russian oil. Recently, the EU has proposed a new price cap of $47.6, set to be enforced from September, ANI reported.
Highlighting the EU’s own imports from Russia, sources added, “The EU was the largest importer of Russian-origin liquefied natural gas (LNG) during this period, purchasing 51% of Russia’s LNG exports, followed by China at 21% and Japan at 18%. Similarly, in pipeline gas imports, the EU topped the list with a 37% share, followed by China (30%) and Turkey (27%).”
India-US Strain Over Tariffs, Russian Ties
Tensions between India and the US intensified this week after senior members of the Trump administration, including Trump himself, made anti-India statements.
Trump announced a 25% tariff on imports from India and imposed an unspecified “penalty” for New Delhi’s energy and defence engagements with Moscow. He also announced a trade pact with Pakistan and hinted at Islamabad possibly supplying oil to India in the future.
Escalating matters further, Trump labelled the Indian economy as “dead”.
“I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” Trump remarked.
“India’s tariffs are too high – among the highest globally. Not acceptable! Therefore, India will now pay a 25% tariff, along with a penalty, starting from August 1st,” Trump wrote on social media.
