India's state refiners halt Russian oil purchases: Report

India is the world's third-largest oil importer and the biggest buyer of seaborne Russian crude.

Updated on: Aug 1, 2025, 07:44:58 IST

By HT News Desk

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India's state refiners have not purchased Russian oil for the last week, marking a dramatic turn in one of Moscow's strongest energy relationships since the onset war in Ukraine, news agency Reuters reported, citing sources.

Over the past month, India, along with China and Brazil, has been at the centre of criticism from the West, mainly the US, for its purchase of Russian oil. (PTI)

Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd are the state refiners in the country that have not acquired Russian crude in the last week or so, four sources, who were aware of the refiners' buying plans, told the news agency.

However, Indian refineries such as IOC, BPCL, HPCL and MRPL or the central government, have not made an official statement on the issue.

Also Read | What does US-Pakistan trade deal over 'massive oil reserves' mean for India?

India, the world's third-largest oil importer, is the biggest buyer of seaborne Russian crude, a vital revenue earner for Russia as it wages war in Ukraine for a fourth year.

Russia, on the other hand, is India's leading supplier, with around 35% of India's total supplies.

Why India halted purchases of oil from Russia

The action follows narrowing price discounts on Russian crude and renewed threats from US President Donald Trump to impose punitive tariffs on countries buying oil from Moscow, the agency further reported.

With discounts now at their lowest since 2022, India's economic rationale for importing from Moscow has weakened.

Also Read | Donald Trump announces plans to develop Pakistan’s “massive oil reserves”

India is substituting Russia with alternative sources, including Middle Eastern oil such as Abu Dhabi's Murban and West African oil, to meet the supply deficit, sources said.

But business interests do not appear to be the sole aspect of the equation. On July 14, Trump threatened 100% tariffs on nations that purchase Russian oil unless Moscow clinches a grand peace agreement with Ukraine.

Trump's new tariffs on Indian products

Meanwhile, Trump on Wednesday announced a 25% tariff on goods imported from India from August 1, but added that negotiations were ongoing. He also warned of potential penalties for purchase of Russian arms and oil.

Also Read | US imposes sanctions against 6 Indian companies over Iran oil trade

On Monday, Trump cut the deadline to impose secondary sanctions on buyers of Russian exports to 10-12 days from the previous 50-day period, if Moscow does not agree to a peace deal with Ukraine.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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