Trump's statements led to India ceasing purchases of Russian oil
India's major state-owned oil refineries have recently stopped purchasing Russian crude oil due to two interconnected factors: the narrowing price discounts on Russian oil and renewed threats from U.S. President Donald Trump to impose punitive tariffs on countries buying Russian oil.
Although no official directive was issued by the Indian government to halt Russian oil purchases, refineries such as Indian Oil Corporation (IOC), Hindustan Petroleum, Bharat Petroleum, and Mangalore Refinery and Petrochemicals have paused their purchases, shifting instead towards crude supplies from Middle Eastern OPEC members and West African producers to fill the supply gaps.
This development marks a significant shift as India had previously increased its imports of Russian oil despite Western criticism, including from the U.S., and became one of Moscow’s largest seaborne crude buyers after the start of Russia’s war in Ukraine in 2022. India’s imports of Russian crude accounted for around 35% of its total oil supplies.
The implications for India’s oil imports include a diversification away from Russian crude to more Middle Eastern and African sources, and a notable increase in U.S. crude oil imports, which grew over 50% in the first half of 2025 compared to the previous year. This move reflects India's effort to balance its energy needs amid geopolitical pressures.
Diplomatically, this move can be seen as India responding cautiously to U.S. pressure to reduce ties with Russia in energy, while officially maintaining its stance that energy purchase decisions remain commercial and market-driven and not government-mandated.
In summary, Indian state refineries halted Russian oil purchases due to tightening price advantages and U.S. tariff threats, leading to a reorientation of oil imports toward other countries, including the U.S., while India manages a complex balancing act between its energy security, economic interests, and geopolitical relations with both Russia and the U.S.
- The shift in India's oil purchases from Russian crude to Middle Eastern and African sources shows a further reach into the global oil-and-gas industry, expanding their network of suppliers.
- The recent policy-and-legislation changes, prompted by war-and-conflicts and politics, have indirectly affected the finance sector, as increasing U.S. crude oil imports signal a shift in business relationships.
- Crime-and-justice implications may arise when the oil-and-gas sector, heavily tied to politics and policy-and-legislation, facesuncertainties and changes in relationships with countries like Russia and the U.S.
- As general-news stories cover the repercussions of this business decision on India-Russia relations, they must consider the country's energy, economic, and political interests in the oil-and-gas industry.
- With the halt of Russian oil purchases, the Indian government navigates delicate waters, balancing energy, finance, and geopolitical concerns within the oil-and-gas industry while maintaining its commercial stance on energy transaction policies.
