Indian state refiners have stopped buying Russian crude in the last week as discounts narrowed and US President Donald Trump warned countries against buying oil from Moscow, sources told Reuters.
India, the world’s third largest oil importer, has been the biggest buyer of seaborne Russian crude, a key revenue earner for Russia as it enters its fourth year of war in Ukraine.
State Refiners Look to Middle Eastern and West African Oil
Four sources familiar with purchase plans said state-run Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL), Bharat Petroleum Corp (BPCL) and Mangalore Refinery and Petrochemical Ltd (MRPL) have not sought Russian crude in the last week.
IOC, BPCL, HPCL, MRPL and the oil ministry did not respond to Reuters’ queries. The refiners which usually buy Russian oil on delivered basis have shifted to spot market for replacement supplies, mostly Middle Eastern grades like Abu Dhabi’s Murban crude and West African oil, sources added.
Private refiners Reliance Industries and Nayara Energy — the latter majority owned by Russian entities including Rosneft — are the biggest buyers of Russian oil in India under their annual deals with Moscow.
Trump’s Tariff Threats and Narrowing Discounts
On July 14, Trump warned of imposing “100% tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine.”
Sources said Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022 when Western sanctions were first imposed on Moscow due to reduced Russian exports and steady demand. Refiners are also worried that new EU curbs could complicate overseas trade, including fundraising, even for buyers adhering to the price cap.
India has reiterated its opposition to “unilateral sanctions”. Meanwhile, Trump on Wednesday announced 25% tariff on goods imported from India starting August 1 and said talks were on. He also warned of penalties for buying Russian arms and oil
On Monday, Trump shortened the deadline to impose secondary sanctions on buyers of Russian exports to 10-12 days from 50 days if Moscow fails to agree to a peace deal with Ukraine.Russia is India’s largest oil supplier, accounting for about 35% of India’s total imports. In H1 2025, private refiners bought around 60% of India’s average 1.8 mb/d of Russian oil, while state refiners which control over 60% of India’s 5.2 mb/d refining capacity bought the rest.