Indian Oil, BPCL, and HPCL are halting Russian oil purchases for now, according to a news report. This comes as Trump doubles tariffs on Indian goods.
India’s state-run oil refiners are reportedly pausing from purchasing Russian crude, following mounting pressure from the US, according to a news report.
A Bloomberg report states that companies such as Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL) plan to hold off on buying Urals crude for October-loading cargoes, pending clearer guidance from the Indian government.
This comes after US President Donald Trump doubled tariffs on Indian exports to 50%, which will come into effect on August 27. Trump blamed India for indirectly supporting the war by buying oil from Russia.
In a post on Truth Social earlier this week, Trump claimed India is purchasing large volumes of Russian oil and reselling it on the open market “for big profits.”
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
However, the move hasn’t yet been implemented against other Russian crude buyers like China.
What next?
While New Delhi has not officially instructed refiners to halt purchases, reports suggest the Modi government has asked state-run oil firms to explore alternative sourcing strategies. As of now, no official comment has been made by India’s oil ministry or the companies involved, the Bloomberg report read.
Despite the pause in spot deals, cargoes already scheduled for August and September loading are expected to be delivered as planned. Traders anticipate that overall October purchases may decline, though not drop to zero.
Putin To Meet Trump And Modi
In a bid to curb the escalating geopolitical and trade uncertainties, Russian President Vladimir Putin is set to meet Trump “in the coming days.” The two leaders are expected to meet “very soon” to discuss a potential end to the war in Ukraine, according to reports.
Putin is also expected to visit India soon, though the dates are not yet finalised, National Security Advisor Ajit Doval said in Moscow, as reported by Sputnik India.
India’s Reliance On Russian Crude
Since the Russia-Ukraine war began in 2022, India has ramped up its purchase of Russian oil, as it was sold at a discount following sanctions by Western countries. Russian oil accounts for about 35% of India’s overall supplies, up from less than 2% before the war began.
At its peak, Russian crude imports accounted for over 2 million barrels per day.
Shares of ONGC, BPCL and IOC clawed back some of the losses but closed down between 0.1% and 1.6%.
The most relevant Indian markets intel delivered to you everyday.
For updates and corrections, email newsroom[at]stocktwits[dot]com