India sticks to Russian oil imports despite U.S. pressure

August 4, 2025 (MLN): India reaffirmed its commitment to continue importing oil from Russia despite threats of penalties issued by U.S. President Donald Trump, according to two Indian government officials familiar with the matter.

Trump recently announced a 25% tariff on Indian exports to the U.S. and suggested additional penalties linked to India’s defense and energy dealings with Moscow.

In a Truth Social post last month, he claimed India would face consequences for purchasing Russian oil and arms, and on Friday, he stated he had been informed that India had ceased buying Russian crude, a claim contradicted by Indian officials.

Officials stated that no immediate policy change is expected. One noted that the oil import arrangements are governed by long-term contracts and cannot be halted overnight.

Another explained that India’s imports of Russian crude have helped prevent a global oil price spike, as prices have remained stable despite Western sanctions.

They added that unlike Venezuelan or Iranian oil, Russian crude is not under direct sanctions, and India is acquiring it below the European Union’s established price cap.

Two senior Indian officials reiterated that there has been no shift in government policy.

While no official comment was provided, Foreign Ministry spokesperson Randhir Jaiswal, during a press briefing on Friday, emphasized India’s steady and time-tested partnership with Russia.

On energy sourcing, he noted that India considers available market options, global conditions, and pricing before making decisions.

Trump, who has prioritized ending the war in Ukraine since returning to office, has grown increasingly critical of Russian President Vladimir Putin.

He has warned of imposing 100% tariffs on imports from any country continuing to buy Russian oil unless Moscow reaches a substantial peace agreement.

Russia remains India’s leading oil supplier, accounting for approximately 35% of total imports.

From January to June this year, India imported around 1.75 million barrels per day of Russian crude, marking a 1% increase from the same period last year.

However, operational adjustments are already underway, as CNBC reported.

Sources confirmed that state-run Indian refiners—Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd—have not sought Russian oil in recent weeks.

The decline in interest follows a narrowing of discounts on Russian oil, which have reached their lowest levels since 2022 amid reduced exports and steady global demand.

Meanwhile, Nayara Energy—a refinery majority-owned by Russian companies including Rosneft—has been affected by new EU sanctions.

Its CEO recently resigned, and three vessels carrying oil products from Nayara have yet to discharge their cargoes, reportedly due to the sanctions’ impact.

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