Indian state-run refineries halt Russian oil purchases amid Trump tariff threats, Reuters reports
Indian state-owned refineries suspended Russian oil purchases last week amid threats of tariffs from U.S. President Donald Trump and narrowing price discounts, Reuters reported on July 30, citing its sources.
The news coincides with Trump's announcement of a 25% tariff on India starting on Aug. 1 as 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 deep discounts and falling European demand.
The South Asian country remains one of the leading buyers of Russian oil, second only to China.
State-owned refiners, including Indian Oil, Hindustan Petroleum, and Bharat Petroleum, have not purchased Russian oil over the past week, four sources familiar with procurement plans told Reuters.
The companies, which typically buy Russian crude on a delivered basis, have turned to spot markets to replace lost volumes, sourcing mainly Middle Eastern grades like Abu Dhabi's Murban and West African crude, the sources said.
While private refiners such as Reliance Industries and Nayara Energy are India's largest buyers of Russian oil, state-owned companies account for over 60% of the country's total refining capacity of 5.2 million barrels per day.
Earlier, Trump threatened to impose a 100% tariff on countries that continued purchasing Russian crude oil.
Upon taking office, Trump imposed short-lived "Liberation Day" tariffs in April, which he withdrew for 90 days due to market and economic concerns.
The U.S. has now imposed various deadlines to reach deals with its many trading partners before tariffs may be reintroduced.
