India’s state refiners have not purchased Russian oil for the last week, marking a dramatic turn in one of Moscow’s strongest energy relationships since the onset war in Ukraine, news agency Reuters reported, citing sources.
India’s state refiners have not purchased Russian oil for the last week, marking a dramatic turn in one of Moscow’s strongest energy relationships since the onset war in Ukraine, news agency Reuters reported, citing sources.
However, Indian refineries such as IOC, BPCL, HPCL and MRPL or the central government, have not made an official statement on the issue.
India, the world’s third-largest oil importer, is the biggest buyer of seaborne Russian crude, a vital revenue earner for Russia as it wages war in Ukraine for a fourth year.
Russia, on the other hand, is India’s leading supplier, with around 35% of India’s total supplies.
Why India halted purchases of oil from Russia
The action follows narrowing price discounts on Russian crude and renewed threats from US President Donald Trump to impose punitive tariffs on countries buying oil from Moscow, the agency further reported.
With discounts now at their lowest since 2022, India’s economic rationale for importing from Moscow has weakened.
India is substituting Russia with alternative sources, including Middle Eastern oil such as Abu Dhabi’s Murban and West African oil, to meet the supply deficit, sources said.
But business interests do not appear to be the sole aspect of the equation. On July 14, Trump threatened 100% tariffs on nations that purchase Russian oil unless Moscow clinches a grand peace agreement with Ukraine.
Trump’s new tariffs on Indian products
Meanwhile, Trump on Wednesday announced a 25% tariff on goods imported from India from August 1, but added that negotiations were ongoing. He also warned of potential penalties for purchase of Russian arms and oil.
On Monday, Trump cut the deadline to impose secondary sanctions on buyers of Russian exports to 10-12 days from the previous 50-day period, if Moscow does not agree to a peace deal with Ukraine.
Article source: hindustantimes.com
