New Delhi, August 2025 — Despite recent international scrutiny and political pressure, Indian oil refiners continue to purchase crude oil from Russian suppliers. Government officials have emphasised that their energy procurement decisions remain guided by factors such as price, crude quality, inventory levels, logistics, and evolving global market conditions.
Refiners Resume Russian Supply
According to official sources, state-owned refiners have maintained purchases of Russian crude, underscoring that their choices are primarily commercially motivated—not politically driven. Spot purchases may have slowed due to narrowing discounts, but long-term contracts remain operational.
MEA Clarifies India's Energy Strategy
On Friday, Ministry of External Affairs spokesperson Randhir Jaiswal reinforced that India bases energy decisions on prevailing global offerings and economic realities, rejecting narratives that link energy procurement to bilateral rivalries. He reaffirmed that India–Russia relations rest on a “steady and time‑tested partnership” and should not be viewed through the lens of third‑party interests.
Jaiswal also cautioned against double standards, noting that many Western nations continue to import Russian oil even while condemning others for doing so—calling it an issue of equitable treatment in international trade.
Spot Buying Pauses Amid U.S. Warnings
Industry insiders stated that several government refiners—including Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp, and Mangalore Refinery & Petrochemicals—paused spot purchases of Russian crude over the past week. The decision reportedly reflects compressed price discounts and intensified diplomatic messaging from the United States, particularly former President Trump’s threat of steep tariffs on Russian oil buyers.
However, these refiners still rely on term contracts and cargoes already in transit, with private players like Reliance Industries and Nayara Energy continuing to source significant volumes of Russian crude through long-term deals.
Geopolitical Tensions and Trade Fallout
The pause in Russian crude imports coincides with escalating diplomatic tensions. Former U.S. President Trump recently imposed a 25% tariff on Indian imports and criticized India’s energy and defense ties with Moscow—labeling the Indian economy as “dead”—while entertaining the idea of Pakistan exporting oil to India in the future.
Though President Trump’s threat of secondary sanctions on countries trading with Russia remains largely symbolic, analysts say implementing such tariffs could spark global oil price shocks and supply disruptions.
Supply Diversification and Energy Resilience
Senior Indian officials, including Commerce Minister Puri, have indicated that India has diversified its energy sources, expanding supplier count from around 27 to over 40 countries. In anticipation of potential disruptions, refiners are actively exploring alternative crude grades from the Middle East and West Africa.
Outlook and Implications
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Indian procurement rationale: Emphasises long-term contracts over sporadic spot buys; decisions rooted in economic, logistical, and strategic factors.
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U.S.–India dynamics: The tariff move and public criticism strain bilateral ties, challenging decades of energy cooperation.
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Supply strategy: Transition underway toward diversification—particularly seeking Middle Eastern and African crude to mitigate reliance on Russia.
India’s stance reflects an assertive energy policy that prioritises fuel security over geopolitical pressure, even as global alignments continue to shift.
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