Indian refiners pause Russian oil purchases, sources say

Indian state refiners have stopped shopping for Russian oil prior to now week as reductions narrowed this month and U.S. President Donald Trump warned nations to not buy oil from Moscow, business sources stated.

India, the world’s third-largest oil importer, is the largest purchaser of seaborne Russian crude, an important income earner for Russia because it wages conflict in Ukraine for a fourth 12 months.

The nation’s state refiners — Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd — haven’t sought Russian crude prior to now week or so, 4 sources conversant in the refiners’ buy plans advised Reuters.

IOC, BPCL, HPCL, MRPL and the federal oil ministry didn’t instantly reply to Reuters’ requests for remark.

The 4 refiners recurrently purchase Russian oil on a delivered foundation and have turned to identify markets for substitute provide — principally Middle Eastern grades resembling Abu Dhabi’s Murban crude and West African oil, sources stated.

Private refiners Reliance Industries and Nayara Energy, majority owned by Russian entities together with oil main Rosneft, have annual offers with Moscow and are the largest Russian oil consumers in India.

On July 14, Mr. Trump threatened 100% tariffs on nations that purchase Russian oil until Moscow reaches a significant peace take care of Ukraine.

Indian refiners are pulling again from Russian crude as reductions shrink to their lowest since 2022, when Western sanctions have been first imposed on Moscow, because of decrease Russian exports and regular demand, sources stated.

Refiners worry the newest EU curbs may complicate abroad commerce together with fund elevating — even for consumers adhering to the worth cap. India has reiterated its opposition to “unilateral sanctions”.

Mr. Trump on Wednesday (July 30, 2025) introduced a 25% tariff on items imported from India from August 1, however added that negotiations have been ongoing. He additionally warned of potential penalties for buy of Russian arms and oil.

On Monday (July 28, 2025) Mr. Trump minimize the deadline to impose secondary sanction on consumers of Russian exports to 10-12 days from the earlier 50-day interval, if Moscow doesn’t agree a peace take care of Ukraine.

Russia is the highest provider to India, liable for about 35% of India’s general provides.

Private refiners purchased almost 60% of India’s common 1.8 million barrels per day of Russian oil imports within the first half of 2025, whereas state refiners that management over 60% of India’s general 5.2 million bpd refining capability, purchased the rest.

Reliance bought Abu Dhabi Murban crude for loading in October this month, an uncommon transfer by the refiner, merchants stated.