Desk Report,
Indian refineries reduce purchases of Russian oil, impact of reduced discounts
India’s state-owned oil refineries stopped buying Russian oil last week, Reuters reported. Their purchases were mainly due to a reduction in the amount of rebates last month. US President Donald Trump expressed excitement over the news.
Indian refineries reduce purchases of Russian oil, impact of reduced discounts
At the same time, US President Donald Trump, while imposing a 25 percent retaliatory tariff on Indian goods on Thursday, said that by buying fuel oil from Russia, India was helping Russia pay for its costs in the Russia-Ukraine war. As a result, they will have to pay the 25 percent tariff and be punished at an unspecified rate. India, the world’s third-largest oil importer, is the biggest buyer of Russian crude exported by sea. The country’s state-owned refineries, such as Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Mangalore Refinery and Petrochemicals Ltd, have not placed any bids for Russian crude for more than a week, four sources familiar with the matter told Reuters. Reuters contacted the Federal Oil Ministry and the companies involved, but they did not comment.
The four refiners used to buy Russian oil regularly under supply contracts, the sources said, but are now turning to the spot market for alternative supplies — mainly Murban crude from Abu Dhabi in the Middle East and West African oil. While private refiners Reliance Industries and Nayara Energy are India’s biggest buyers of Russian oil, state-owned refineries control more than 60 percent of the country’s total refining capacity of 5.2 million barrels per day, or 5.2 million barrels per day.
On July 14, Trump warned that countries buying Russian oil would face 100 percent tariffs unless a major peace deal with Ukraine was reached.
Meanwhile, US President Donald Trump claimed that he had “heard” that India had stopped importing Russian oil. Not only that, he praised it as a good move. However, the Indian Ministry of External Affairs has clarified that the country’s energy purchases are determined based on market dynamics and national interests. They do not have any information that Indian oil companies have stopped importing Russian oil.
Trump also told news agency ANI, “As far as I know, India will no longer buy oil from Russia, which is a good move. Let’s see what happens.”
In response to Trump’s attack on Russian oil purchases, Indian Ministry of External Affairs spokesperson Randhir Jaiswal said at a press conference on Friday, “Everyone is aware of our broader approach to determining the source of fuel purchases. We try to buy oil according to market availability. We do not have a fixed source in this regard.”
India also clarified its relationship with Russia. It was made clear that Russia is a “tested” partner of India. In a statement, it was said that India’s foreign policy with different countries has its own basis. It should not be viewed through the lens of a third country.
