India to maintain Russian oil imports despite Trump threats, government sources say
On top of a new 25% tariff on India's exports to the U.S., Trump indicated in a Truth Social post last month that India would face additional penalties for purchases of Russian arms and oil. On Friday, Trump told reporters he had heard that India would no longer be buying oil from Russia.
But the sources said 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."
Justifying India's oil purchases from Russia, a second source said India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector.
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, the source said.
The New York Times also quoted two unnamed senior Indian officials on Saturday as saying there had been no change in Indian government policy.
Indian government authorities did not respond to Reuters' request for official comment on its oil purchasing intentions.
However, during a regular press briefing on Friday, 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.
The White House did not immediately respond to requests for comment.
India's top supplier
Trump, who has made ending Russia's war in Ukraine a priority of his administration since returning to office this year, has expressed growing impatience with Russian President Vladimir Putin in recent weeks.
He has threatened 100% tariffs on U.S. imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine.
Russia is the leading supplier to India, the world's third-largest oil importer and consumer, accounting for about 35% of its overall supplies.
India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by sources.
But while the Indian government may not be deterred by Trump's threats, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022 - when sanctions were first imposed on Moscow - due to lower Russian exports and steady demand.
Indian Oil Corp, Hindustan Petroleum Corp , Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd have not sought Russian crude in the past week or so, four sources told Reuters.
Nayara Energy - a refinery majority-owned by Russian entities, including oil major Rosneft, and major buyer of Russian oil - was recently sanctioned by the EU.
Nayara's chief executive resigned following the sanctions, and three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions, Reuters reported last week.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
29 minutes ago
- Middle East Eye
US Congressman Khanna leads push to recognise Palestinian state
US Democratic Congressman Ro Khanna's effort to gather support for recognising a Palestinian state is now being supported by 13 House Democrats, as of Monday. In a letter to President Donald Trump and Secretary of State Mark Rubio, which was obtained by both the Jewish Insider and Axios last week, the Democratic lawmakers have urged the government to follow in the footsteps of 147 countries that have already recognised a Palestinian state, saying the US should not 'be isolated from the rest of the free world'. Axios reported on Monday that the number of lawmakers who had signed the letter had grown to 13. The lawmakers who have signed the letter so far include representatives Greg Casar; Lloyd Doggett; Veronica Escobar; Maxwell Frost; Jared Huffman; Mark Pocan; Bonnie Watson Coleman; Chellie Pingree; Nydia Velazquez; Andre Carson; Jim McGovern; and Al Green. "The recognition would come by embracing the 22-state Arab League Plan just passed this week that calls for a Palestinian state and the recognition of Israel as a Jewish democratic state,' the letter went on to say. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters 'We encourage the governments of other countries that have yet to recognize Palestinian statehood, including the United States, to do so as well'. Last week, 11 lawmakers had signed the letter, according to a report by Jewish Insider. After Jewish Insider leaked the letter, Khanna shared a post on X on 31 July, saying: 'Someone leaked our effort to try to sabotage it. Sad. It won't work. 'Recognizing a Palestinian state is an idea whose time has come. The response of my colleagues has been overwhelming. We will build support and release prior to the UN convening.' Congressman Green has been calling for a ceasefire in Palestine since November 2023, and in December 2023 introduced a bill affirming the right of the State of Palestine to exist. He told Axios he planned to reintroduce the bill in Congress. International recognition More than 75 percent of United Nations members - 147 of 193 member states - recognise Palestine as a sovereign state as of March this year. Spain, Ireland and Norway formally recognised a Palestinian state in May last year, while Slovenia did so in June 2025. France said it would recognise a Palestinian State at the United Nations General Assembly in New York in September, more than a week and a half ago. Last week, the UK said it would recognise a Palestinian state if Israel does not agree to a ceasefire by the time the UN convenes. Malta and Canada say they will also conditionally recognise a Palestinian state in September. The US has threatened to penalise Canada regarding a trade deal after Canadian Prime Minister Mark Carney made the announcement. Portugal also joined a growing number of countries considering the recognition of the State of Palestine at the upcoming UN meeting. Prime Minister Luis Montenegro's office said last week that the government would consult with the president and parliament before making a final decision.
Khaleej Times
an hour ago
- Khaleej Times
Oil prices defy Opec+ hike as geopolitical risks, supply tightness lend support
Oil prices rose on Monday despite Opec+ confirming it will raise output in September, as a combination of tight inventories, renewed geopolitical tensions and expectations of US interest rate cuts offset concerns about increased supply. The day's rally came after early-session weakness pushed crude to its lowest in a week. By mid-morning, Brent crude was trading at $69.48 per barrel, up 0.30 per cent from Friday's close of $69.27. West Texas Intermediate (WTI) gained 1.86 per cent to $66.77 per barrel from $65.55. Later in the day, Brent crude futures fell $1.17, or 1.7%, to $68.50 a barrel by 1127 GMT. US West Texas Intermediate crude declined $1.26, or 1.9%, to $66.07. Both contracts lost about $2 on Friday. The alliance of major oil producers, including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, confirmed on Sunday that they will raise collective output by 547,000 barrels per day (bpd) in September compared to August levels. This adjustment is part of a phased unwinding of the 2.2 million bpd in voluntary cuts introduced on April 1, in four equal monthly increments. The group stressed the plan remains flexible, with the possibility of pausing or reversing the increases should market conditions warrant it. Opec's communiqué cited healthy market fundamentals, reflected in low inventories, and a broadly steady global economic outlook. That backdrop was challenged, however, by fresh US labour market data that fell well short of expectations, reviving speculation that the Federal Reserve could cut interest rates as early as September. The US economy added just 73,000 jobs in July, according to the Labour Department, far below forecasts. Lower rates tend to weaken the dollar, making oil cheaper for non-dollar buyers and potentially boosting demand. US President Donald Trump has publicly urged the Fed to cut rates, heightening market bets on a policy shift. At the same time, Trump's increasingly combative exchanges with former Russian president Dmitry Medvedev have reintroduced concerns about global energy security. Trump disclosed on Sunday that two US nuclear submarines had been deployed 'where they need to be' following Medvedev's warning that US pressure over the Ukraine conflict risked escalating into a broader confrontation. Trump has also threatened sweeping secondary sanctions and tariffs on Russian oil buyers unless Moscow ends the war in Ukraine within days. Analysts say such measures could disrupt up to 2.75 million bpd of seaborne Russian crude, forcing major importers such as India and China to source alternative—and likely more expensive—supplies. Vijay Valecha, chief investment officer at Century Financial, said the market's reaction reflected a tug of war between the bearish implications of more Opec+ supply and the bullish potential of sanctions-driven disruptions. 'While the 547,000 bpd increase is designed to regain market share, the escalating geopolitical risks surrounding Russian oil could significantly tighten global supply,' he said. 'If sanctions remove substantial Russian volumes from the market and global demand holds, the supply–demand balance could shift decisively in favour of higher prices.' Technical indicators suggest the rebound could have further to run. WTI has tested and bounced off its 100-day exponential moving average near $65.99 and may look to challenge resistance at the 200-day simple moving average of $67.48. Brent has similarly found support near its 200-day moving average at $68.95, with the next upside target around $71.26. Frank Walbaum, market analyst at Naga, said traders remain alert to the dual forces at play. 'Potential disruptions to Russian crude shipments, especially to Asia, could underpin prices as Trump's secondary tariff deadline approaches,' he noted. 'While extra Opec+ supply may weigh on prices, the group's readiness to adjust output in response to market signals adds a layer of uncertainty.' Market sentiment will also be shaped by the pace of Opec+'s supply unwinding beyond September. Should prices come under sustained pressure, the group may slow or reverse the rollback of cuts. Conversely, if geopolitical tensions drive prices higher, producers could stick with planned increases to safeguard market share. The immediate outlook for oil hinges on whether geopolitical risks translate into real supply losses, and whether demand remains resilient in the face of mixed economic data. The International Energy Agency (IEA) has projected that oil demand growth will slow in 2025 to about 1 million bpd from 2.2 million bpd in 2024 as post-pandemic rebounds fade and energy transition policies gather pace. But it warns that any significant disruption to Russian exports could tighten balances sharply. On the supply side, global inventories remain below five-year averages, a factor that continues to provide underlying support. The US Energy Information Administration recently reported that US commercial crude stocks fell by 3.5 million barrels in the last week of July, while product inventories also declined.
Zawya
an hour ago
- Zawya
Oil producer pressure, Trump rollbacks threaten last-chance global plastics treaty
Hopes for a "last chance" ambitious global treaty to curb plastic pollution have dimmed as delegates gather this week at the United Nations in Geneva for what was intended to be the final round of negotiations. Diplomats and climate advocates warn that efforts by the European Union and small island states to cap virgin plastic production - fuelled by petroleum, coal and gas - are threatened by opposition from petrochemical-producing countries and the U.S. administration under Donald Trump. Delegates will meet officially from Tuesday for the sixth round of talks, after a meeting of the Intergovernmental Negotiating Committee (INC-5) in South Korea late last year ended without a path forward on capping plastic pollution. The most divisive issues include capping production, managing plastic products and chemicals of concern, and financing to help developing countries implement the treaty. Delegates told Reuters that oil states, including Saudi Arabia and Russia, plan to challenge key treaty provisions and push for voluntary or national measures, hindering progress toward a legally binding agreement to tackle the root cause of plastic pollution. Government spokespeople for Saudi Arabia and Russia were not immediately available for comment, Andres Del Castillo, senior attorney at the Center for International Environmental Law (CIEL), a non profit providing legal counsel to some countries attending the talks, said oil states were questioning even basic facts about the harm to health caused by plastics. "We are in a moment of revisionism, where even science is highly politicized," he said. The U.S. State Department told Reuters it will lead a delegation supporting a treaty on reducing plastic pollution that doesn't impose burdensome restrictions on producers that could hinder U.S. companies. A source familiar with the talks said the U.S. seeks to limit the treaty's scope to downstream issues like waste disposal, recycling and product design. It comes as the Trump administration rolls back environmental policies, including a longstanding finding on greenhouse gas emissions endangering health. Over 1,000 delegates, including scientists and petrochemical lobbyists, will attend the talks, raising concerns among proponents of an ambitious agreement that industry influence may create a watered-down deal focused on waste management, instead of production limits. ISLAND STATES VULNERABLE Plastic production is set to triple by 2060 without intervention, choking oceans, harming human health and accelerating climate change, according to the OECD. "This is really our last best chance. As pollution grows, it deepens the burden for those who are least responsible and least able to adapt," said Ilana Seid, permanent representative of Palau and chair of the Alliance of Small Island States (AOSIS). Small island states are particularly impacted by plastic waste washing ashore, threatening their fishing and tourism economies. They stress an urgent need for dedicated international funding to clean up existing pollution. "Plastics are a concern for human health because (plastic) contains about 16,000 chemicals, and a quarter of these are known to be hazardous to human health," said Dr. Melanie Bergmann of the Alfred Wegener Institute in Germany. Jodie Roussell, global public affairs lead at food giant Nestle and a member of a 300-company coalition backing a treaty to reduce plastic pollution, told Reuters that harmonizing international regulations on packaging reduction and sustainable material use would be the most cost-effective approach. French politician Philippe Bolo, a member of the global Interparliamentary Coalition to End Plastic Pollution, said that a weak, watered down treaty that focuses on waste management must be avoided. Bolo and a diplomatic source from a country attending the talks said the potential of a vote or even a breakaway agreement among more ambitious countries could be explored, as a last resort. Inger Andersen, executive director of the United Nations Environment Programme, however, said countries should push for a meaningful pact agreed by consensus. "We're not here to get something meaningless... you would want something that is effective, that has everybody inside, and therefore everybody committed to it," she said. (Reporting by Olivia Le Poidevin in Geneva; Valerie Volcovici in Washington and additional reporting by Alexander Marrow in London; Editing by Susan Fenton)
