Indian state refiners pause Russian oil purchases, sources say

NEW DELHI : India’s state-owned oil refiners have not imported Russian crude over the past week as discounts have narrowed and U.S. President Donald Trump warned that buyers of Russian oil could soon face steep tariffs, Reuters reported Thursday, citing industry sources.

Indian Oil Corporation (IOC), the country’s largest refiner, was among those to halt purchases. IOC operates 10 of India’s 20 refineries, with a combined annual capacity of 60 million metric tons.

Other major state-owned refiners — Hindustan Petroleum, Bharat Petroleum and Mangalore Refinery and Petrochemicals — have also paused Russian oil imports, according to the same sources.

Executives at the affected companies told Reuters that Indian refineries are now turning to the spot market to fill supply gaps, ramping up purchases from Middle Eastern OPEC members and West African producers.

The shift marks a notable reversal for India, which became a major buyer of discounted Russian crude following the Kremlin’s invasion of Ukraine in 2022.

Indian imports of Russian oil surged over the past two years despite pressure from Western governments, helping Moscow offset losses from lost European markets.

Still, India’s privately owned refiners Reliance Industries and Nayara Energy continue to be the country’s top importers of Russian oil.

Nayara, which is partly owned by Russia’s state-run oil giant Rosneft, has come under fresh scrutiny after being named in the EU’s 18th sanctions package.

The pause in state-sector imports follows Trump’s ultimatum for Russia to reach a peace deal with Ukraine by Aug. 8, threatening 100% tariffs on countries that continue purchasing Russian crude if the deadline passes without progress.

Source : REUTERS