India will maintain Russian oil imports despite Trump’s warnings and new US tariffs.
State refiners paused new Russian crude orders as discounts narrowed, but officials said no immediate changes are planned.
Analysts warn a forced shift away from Russian crude could increase India’s oil bill by $9–11 billion, risking higher domestic fuel prices and inflation.
India will continue purchasing oil from Russia despite US President Donald Trump's warnings of imposing penalties, two Indian government sources told Reuters on August 2.
Along with introducing a new 25% tariff on Indian exports to the US, Trump mentioned in a Truth Social post last month that India might face more penalties because of its purchases of Russian oil and arms. On August 1, he said he had heard that India would stop buying Russian oil.
As per reports, India’s state-run oil refiners stopped buying crude from Russia over the last one week leading up to August 1, soon after price discounts narrowed and pressure intensified from US President Donald Trump.
According to another Reuters report published on July 30, Indian state refiners such as the Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) have not placed new orders for Russian crude recently.
But the sources told Reuters that there would be no immediate changes.
"These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight."
Unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is buying it below the current price cap fixed by the European Union, another source told Reuters.
During a regular press briefing on August 1, foreign ministry spokesperson Randhir Jaiswal said India has a "steady and time-tested partnership" with Russia.
"On our energy sourcing requirements...we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," he said.
Oil Shift May Push Inflation
Experts warn that if India is eventually pressured to shift away from importing Russian crude, the shift could increase its oil import bill by $9–11 billion, potentially driving up domestic fuel costs and inflation, as per Kpler data.
According to Reuters, Indian refiners could turn to Middle Eastern and West African suppliers if Russian crude flows face further disruption.
(With inputs from PTI.)
