India will continue to buy Russian oil, govt sources say
India will continue purchasing Russian oil under long-term contracts despite US President Donald Trump's recent threats of additional penalties, two senior government sources said, emphasizing that existing accords cannot be canceled overnight.
Trump last month posted on Truth Social that he would impose 100% tariffs on countries buying Russian oil unless Moscow reached a major peace deal with Ukraine, and on Friday told reporters he believed India had ceased its Russian oil imports.
But Reuters reported this week that no formal directive has been issued to India's state refiners Indian Oil Corp, Hindustan Petroleum, Bharat Petroleum and Mangalore Refinery & Petrochemicals to halt purchases, even as those companies paused new orders when Russian discounts narrowed to their lowest since 2022.
'These are long-term oil contracts,' one source said. 'It is not so simple to just stop buying overnight.'
Foreign Ministry spokesperson Randhir Jaiswal reiterated that India assesses energy purchases based on market availability, pricing and global conditions, and noted that New Delhi's 'steady and time-tested partnership' with Russia stands on its own merits, independent of third-country pressures.
Russia remained India's top crude supplier in January–June 2025, accounting for roughly 35% of imports about 1.75 million barrels per day, up 1% from the same period a year earlier followed by Iraq, Saudi Arabia and the United Arab Emirates. The pause by state refiners this week reflected market dynamics rather than policy changes, sources said.
The European Union last month imposed sanctions on Nayara Energy, a major Russian-backed refinery operator in which Rosneft holds a majority stake. EU measures have delayed the discharge of three oil-product shipments chartered by Nayara, and led to the resignation of its chief executive, replaced by company veteran Sergey Denisov.
White House officials did not immediately comment on India's position. Analysts say New Delhi's reliance on discounted Russian crude offers both economic benefits and geopolitical complications, as global markets await potential US penalty implementations.
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