Pressmediaofindia
Related Articles
08-08-2025
NEW DELHI: Indian refiners are awaiting government directions on whether to continue buying Russian oil after the United States decided to impose fresh 25% tariffs on Indian goods over New Delhi’s energy ties with Russia, four industry sources said.
The new duties, aimed at penalizing India for its Russian oil imports, come on top of existing tariffs Washington has levied to fix its trade deficit with the South Asian nation.
India said the latest U.S. action is “unfair, unjustified and unreasonable.”
“So far, we have not been told anything by the government, so we will not stop Russian oil imports,” said an official from a private refining company.
India, the world’s third-largest oil importer and consumer, relies on Russian oil for more than a third of its oil needs.
While state refiners have paused imports of Russian oil, private companies Reliance Industries (RELI.NS), opens new tab, Nayara Energy, and HPCL Mittal Energy (HMEL) continue to lift Russian oil.
U.S. President Donald Trump has criticised India’s Russian oil purchases, arguing they help fund Moscow’s war in Ukraine.
If forced to cut Russian imports, Indian refiners are expected to turn to suppliers in the Middle East, Africa and the Americas. Saudi Arabia, India’s third-largest oil supplier, has already raised its official selling prices for Asia.
“In anticipation of higher Indian demand, they have kept the prices very strong,” said a refining official in India, adding, the markets expect imposition of new tariffs to disrupt existing trade flows in favour of Middle Eastern crude.
The additional tariffs are set to take effect in 21 days.
Trump’s executive order allows for modifications if Russia or India “align sufficiently with the United States on national security, foreign policy, and economic matters.”
India, which gets more than a third of its oil imports from Russia, is likely to turn to supplies from the Middle East and Africa and other regions if it is forced to cut Russian imports due to possible U.S. penalties.
WHY IS INDIA IMPORTING RUSSIAN OIL?
India turned to purchasing Russian oil sold at a discount after Western countries imposed sanctions on Moscow and shunned its supplies over its invasion of Ukraine in 2022.
Russia has become the top supplier to India, accounting for about 35% of India’s overall supplies, up from less than 2% before the war in Ukraine.
Global crude prices surged to $137 per barrel on supply shortage fears in the wake of the Western-led sanctions before stabilising. The discounted Russian crude has reduced Indian refiners’ costs. India imports more than 85% of its oil needs.
The world’s third biggest oil importer and consumer received about 1.75 million barrels per day of Russian oil in the first half of this year, up 1% from a year ago, trade data showed.
While Indian state refiners buy Russian oil from traders, private refiners Nayara Energy and Reliance Industries Ltd (RELI.NS), opens new tab, operator of the world’s largest refining complex, have long-term supply deals with Rosneft (ROSN.MM), opens new tab.
U.S. President Donald Trump has said he would raise the tariff charged on goods imported from India substantially from 25%, in view of New Delhi’s continued purchases of Russian oil. He has warned that countries purchasing Russian exports could face sanctions if Russia fails to reach a peace deal with Ukraine.
