India shifts oil purchases away from Russia before Trump-Putin Alaska meeting, Bloomberg reports
Indian refineries have begun reducing their share of Russian imports and purchasing oil from new suppliers ahead of Alaska negotiations on ending Russia's war in Ukraine, Bloomberg reported on Aug. 14.
This week, state companies Indian Oil Corp. and Bharat Petroleum Corp. secured supplies from the United States, Brazil, and Middle Eastern producers for September-October delivery, according to the media outlet.
U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Aug. 15 for high-level talks, followed by "five-on-five" delegation negotiations.
The news comes after Trump imposed heavy tariffs on India after he rebuked New Delhi for its purchases of Russian energy and arms amid the war in Ukraine.
India, long dependent on Middle Eastern oil, sharply increased imports from Russia after Moscow launched its 2022 full-scale invasion of Ukraine, taking advantage of price caps and falling European demand.
In 2025, Indian refineries became the world's largest buyers of Russian seaborne crude, importing about 80% of Russian Urals oil, according to Kpler data.
Trump announced a 25% tariff on India starting Aug. 1, prompting Indian state-run refineries to quickly halt Russian oil purchases amid the tariff threats. On Aug. 6, he doubled tariffs on Indian goods to 50% and demanded India stop buying Russian energy before his meeting with Putin.
As a result, Indian state companies are returning to traditional oil supplies from Saudi Arabia, in addition to new contracts, Bloomberg reports. Saudi Arabia will supply 22.5 million barrels to India in September, the largest monthly shipment since September 2024.
Russian producers have responded to India's rejection of their oil by cutting Urals prices for Chinese buyers and aggressively marketing diverted supplies originally destined for India. China has become the leading buyer of Russian crude in the wake of Trump's tariffs.
While state companies are pulling back from spot market deals, private refiners like Reliance Industries and Russian-owned Nayara Energy are expected to continue some Russian purchases through term contracts.
According to Bloomberg, they also face risks as banks and shipping companies are reluctant to handle Russian oil trades due to fears of U.S. sanctions.
Some private buyers may use smaller banks, Chinese currency, and shadow fleet operations to continue purchases.
