India to continue buying Russian oil despite U.S. sanction threats

According to two Indian government sources speaking to Reuters, India will maintain its oil imports from Russia despite US President Donald Trump’s threats of sanctions over purchases of Russian oil and arms.

Last month, Trump imposed a 25% additional tariff on India’s exports to the U.S. and, in a social media post, warned of further sanctions due to India’s purchases of Russian oil and arms. On Friday, he told reporters that he had heard India would no longer buy oil from Russia.

However, government sources immediately stressed that no such change would take place. One source said, “These are long-term oil contracts, and it’s not possible to stop purchases overnight.”

Another source justified India’s purchase of Russian oil by stating that it has helped prevent a sharp rise in global oil prices. Despite Western restrictions on Russia, prices have remained stable.

It was also noted that unlike Iranian and Venezuelan oil, Russian crude is not directly subject to sanctions, and India is buying it below the price cap set by the European Union.

The New York Times, citing two senior Indian officials, also reported that there has been no change in the government’s policy on purchasing Russian oil.

Official government bodies did not respond to enquiries on the matter.

At a press conference on Friday, Ministry of External Affairs spokesperson Randhir Jaiswal highlighted India’s “steady and long-term partnership” with Russia, adding that energy procurement decisions are based on market availability and global circumstances.

Trump’s priority is to end the war in Ukraine, and he has maintained a tough stance against Russia. He has threatened 100% tariffs on US imports from countries buying Russian oil unless Moscow reaches a major peace deal.

Russia is India’s largest oil supplier, accounting for about 35% of the country’s total oil needs. India imported approximately 1.75 million barrels of Russian oil per day from January to June this year, marking a 1% increase year-on-year.

However, sources say that in July, Indian state-owned refiners reduced their purchases of Russian oil due to discounts narrowing to their lowest levels since 2022 and a decline in Russian exports.

Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd have not recently purchased Russian crude.

Meanwhile, Nayara Energy — whose major shareholder is the Russian company Rosneft — has been subjected to sanctions by the European Union.

Following these sanctions, Nayara Energy’s chief executive resigned, and three oil-carrying vessels belonging to the company have yet to unload their cargoes due to the new EU measures.

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