India’s state-run oil companies have stopped buying Russian crude over the past week, citing tighter discounts and growing political pressure from the United States, Reuters reports.
India, the world’s third-largest oil importer, has become the leading buyer of seaborne Russian oil since 2022. However, recent shifts in global pricing and diplomatic signals appear to be reshaping procurement strategies.
Officials close to purchasing plans at four major state refiners — Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemical — confirmed they have made no new requests for Russian oil in the last several days.
Refiners Turn to Middle Eastern and African Crude
The state firms, which typically source Russian oil on a delivered basis, are now actively seeking alternative supplies on the spot market. Most have turned to Middle Eastern grades, particularly Abu Dhabi’s Murban, as well as West African oil, sources said.
While private firms like Reliance Industries and Nayara Energy remain India’s largest importers of Russian crude, state-run refiners still account for over 60% of the country’s 5.2 mln barrels per day in total refining capacity, giving their decisions considerable weight in global markets.
Trump’s Tariff Threat Adds Diplomatic Pressure
The pause in Russian oil procurement comes shortly after former US President Donald Trump warned of a 100% tariff on any nation continuing to buy from Moscow, unless Russia agrees to a major peace deal with Ukraine. He issued the statement on July 14, a move widely interpreted as a signal to key global buyers such as India.
Although India’s government has not issued an official statement in response, state refiners appear to be responding to both market conditions and geopolitical signals, balancing commercial interests with strategic risks.
Kursiv also reports that the Russian government has reintroduced a comprehensive ban on petrol exports.
