India's State-Run Refiners Ramp Up Russian Oil Buying Despite US Criticism
Earlier this month, state refiners paused buying of Urals after President Donald Trump singled out India’s role in the Russian oil trade, threatening economic penalties.
India’s state-run refiners have returned to buying Russian oil after a brief pause, despite the South Asian nation facing higher tariffs for the trade and a volley of criticism from Trump officials.
Processors including Indian Oil Corp. and Bharat Petroleum Corp. bought some cargoes of Russian Urals over the past two days, said traders familiar with the matter who asked not to be identified because they’re not authorized to speak publicly. Shipments are for loading in September and October, they added.
Earlier this month, state refiners paused buying of Urals after President Donald Trump singled out India’s role in the Russian oil trade, threatening economic penalties. New Delhi asked processors in late July to draw up plans to pivot away from the OPEC+ producer in the scenario where flows were stopped.
White House Trade Adviser Peter Navarro wrote in a Financial Times column this week that the surge in Russian imports was driven by “profiteering by India’s Big Oil lobby” and not domestic needs. Separately, US Treasury Secretary Scott Bessent claimed some of the “richest families in India” were benefiting from buying Moscow’s oil, and reiterated plans to boost tariffs on New Delhi.
Trump has threatened to raise the levies on all Indian imports to the US to 50% on Aug. 27, half of which would be due to purchases of Russian oil. India’s government has stated that its crude imports are based on market factors and that it will take all necessary actions to protect national interests.
The souring of relations between India and the US has pushed New Delhi closer to Moscow and Beijing. Prime Minister Narendra Modi recently hailed Russian President Vladimir Putin as a “friend,” and he has plans to visit China later this month — his first trip to the country in seven years.
Meanwhile, the discount for Urals — Russia’s flagship crude that’s shipped from its western ports — has deepened to $2.50 a barrel to Dated Brent, up from $1 in July, according to traders. That’s likely provided added incentive for India’s oil refiners to return to buying the grade, they added.
Spokespersons from IOC and BPCL didn’t immediately reply to emails seeking comment on the recent purchases of Urals.
