Key Points
- India’s top oil refiner states the country will continue buying Russian crude as long as the oil itself is not sanctioned
- Companies are purchasing from non-sanctioned The Russian producers, avoiding major sanctioned firms
- India cites economic considerations rather than political pressure for its purchases
- Even after sanctions, India’s oil imports from Russia remain significant
- Recent US tariff imposition and warnings from President Trump could influence trade decisions
ISLAMABAD: Despite pressure from Western nations, new sanctions targeting Russian energy exporters, and warnings from US President Donald Trump, India continues its longstanding practice of importing Russian oil.
The US recently imposed tariffs on certain Russian energy shipments, and Trump has cautioned that India’s continued purchase of Russian crude amounts to financing Moscow’s war in Ukraine. He has also warned that India’s dumping of rice into the US market could trigger even higher US tariffs.
Indian government and major oil companies affirm they will persist as long as Russian crude remains legally tradable and economically viable. Leading public refiner Indian Oil Corporation (IOC) has said it will continue buying Russian crude from non-sanctioned firms. “Russian crude is not sanctioned,” said an IOC executive. “If the seller, tanker, and price meet the requirements, we will purchase.”
India’s energy officials maintain that their sourcing decisions are based on economics rather than geopolitics. Earlier this year, the Indian finance minister reiterated that Indian oil imports were determined by the national needs.
Many Indian refineries rely on crude from Russian producers not under sanctions, avoiding flagged ships subject to Western restrictions. Analysts note this strategy provides India — which imports over 85% of its crude oil — a buffer against global supply disruptions and helps sustain domestic fuel stability.
Refiners are monitoring the growing discounts closely. Should Russian crude become pricier or sanctions broaden, India may diversify more actively toward the Middle East or other oil-producing regions. The recent US tariffs and Trump’s warnings add a layer of political and economic complexity to India’s oil import strategy.
