Aug 01, 2025 (MarketLine via COMTEX) --
The move is said to have been in response to the decrease in price discounts and warnings from US President Donald Trump.
Indian state-owned oil refineries have halted their acquisitions of Russian crude oil in the past week, reported Reuters, citing sources familiar with the matter.
The move is said to have been in response to the decrease in price discounts and warnings from US President Donald Trump regarding purchases from Russia.
India is the third-largest oil importer globally and is the foremost buyer of seaborne Russian crude.
The state refiners aEUR" Indian Oil, Hindustan Petroleum, Bharat Petroleum, and Mangalore Refinery and Petrochemicals aEUR" have not made any requests for Russian crude recently, according to the news agency.
These refiners typically acquire Russian oil on a delivered basis but have shifted their focus to spot markets for alternative supplies, primarily opting for Middle Eastern grades such as Abu Dhabi's Murban crude and oil from West Africa.
While private companies such as Reliance Industries and Nayara Energy are the main purchasers of Russian oil in India, state refiners manage more than 60% of the nationaEUR(TM)s total refining capacity, which stands at 5.2 million barrels per day (mbbl/d).
On 14 July, Trump warned of potential 100% tariffs on countries that continue to buy Russian oil unless a significant peace agreement is achieved concerning the conflict in Ukraine.
Indian oil refiners are scaling back their purchases of Russian crude oil as the discounts have reached their lowest levels since the onset of Western sanctions against Moscow in 2022.
Refiners are expressing concerns that the latest EU restrictions may complicate international trade and financing, even for those buyers who comply with the established price cap. India has reiterated its opposition to unilateral sanctions.
Earlier this week, President Trump announced a 25% tariff on goods imported from India, set to take effect on 1 August 2025, while noting that negotiations are still ongoing.
He also cautioned about potential penalties for the acquisition of Russian arms and oil.
Furthermore, Trump has reduced the time frame for implementing secondary sanctions on buyers of Russian exports to 10aEUR"12 days, down from the previous 50-day period, if a peace agreement with Ukraine is not reached.
Russia is currently India's largest oil supplier, providing around 35% of the country's total oil imports. During the first half of 2025, private refiners accounted for nearly 60% of India's average imports of 1.8mbbl/d of Russian oil, while state-owned refiners, which manage more than 60% of the nation's total refining capacity of 5.2mbbl/d, made up the remainder.
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COMTEX_467713912/2227/2025-08-01T09:35:37
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