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India reluctantly cuts Russian oil imports under US pressure, Bloomberg reports

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India reluctantly cuts Russian oil imports under US pressure, Bloomberg reports
The Vadinar Refinery complex operated by Nayara Energy Ltd., jointly owned by Rosneft Oil Co. and Trafigura Group Pte., near Vadinar, Gujarat, India, on April 26, 2018. (Dhiraj Singh/Bloomberg via Getty Images)

Indian refineries are preparing to modestly reduce Russian crude purchases in the coming weeks amid mounting U.S. trade pressure, Bloomberg reported on Aug. 26.

Since Russia's full-scale invasion began in 2022, India has dramatically expanded its imports of Russian oil. The country now accounts for 37% of Moscow's total petroleum exports, providing a critical revenue stream that helps finance military operations in Ukraine.

State-owned and private processors, including energy giant Reliance Industries, plan to trim daily purchases to 1.4-1.6 million barrels from the current 1.8 million barrels, Bloomberg wrote, citing undisclosed industry sources.

According to the news outlet, the modest reduction represents more of a token gesture to Washington, signaling India's reluctance to sever economic ties with Moscow.

India intends to scale back Russian oil shipments ahead of doubled U.S. tariffs on Indian imports reaching 50%, set to take effect Aug. 27. These tariff measures could prove temporary, as reaching a trade deal between the U.S. and India might ease pressure and restore previous duty rates, sources told Bloomberg.

The Trump administration has publicly criticized New Delhi for the dramatic surge in Russian purchases since 2022.

U.S. officials have targeted India's refining sector, accusing the country of bankrolling Russian aggression through oil deals.

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U.S. President Donald Trump announced a 25% tariff on India starting Aug. 1, prompting Indian state refineries to quickly halt Russian oil purchases. On Aug. 6, Trump signed an executive order imposing an additional 25% duty on Indian goods, effective Aug. 27, if the country continues buying Moscow's oil.

This forced Indian refineries to seek alternative supply sources with the U.S., Brazil, and Middle Eastern producers, fearing further U.S. measures before Trump's meeting with Russian President Vladimir Putin in Alaska.

India's state refiners reportedly resumed Russian oil purchases immediately after the summit.

Despite the ongoing war in Ukraine, Washington has yet to impose promised additional trade measures on Russian oil exports.

Trump previously issued Moscow an ultimatum on July 29, demanding an end to the war within 10 days under threat of secondary tariffs, but no new sanctions materialized after the deadline passed.

US, Russia discuss energy deals as incentives for Ukraine peace talks, Reuters reports
The deals were reportedly offered as incentives to push the Kremlin toward a peace agreement and to provide Washington with justification for easing certain sanctions on Russia.
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Yana Prots

Newsroom Intern

Yana Prots is an intern on the business desk of the Kyiv Independent. She previously worked as a journalist at the NGO Center of United Actions and as a social media editor at Hromadske media. Yana holds a bachelor’s degree in journalism from the Taras Shevchenko National University of Kyiv and completed a year as an exchange student at the University of Zurich. Now, she is pursuing a master’s degree in International Finance and Investment at the Taras Shevchenko National University of Kyiv.

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