Indian refiners are feeling the collateral impact of US and EU policy toward Russia as the war in Ukraine rages on. With US President Donald Trump threatening novel “secondary tariffs” on countries that buy Russian crude, Indian refiners are flummoxed — both state and private firms in India say they have received no clear signal from New Delhi on whether or not they should continue purchasing Russian crude. The continued uncertainty is adding challenges for Indian refiners, although the impacts of Russian crude restrictions differ for various firms. Sources at private and state refiners told Energy Intelligence they will not order or receive any Russian oil “in the interest of the nation” if Trump’s threatened tariffs take effect as planned on Aug. 27. They include an additional 25% tariff, doubling separate existing import taxes, if Indian buyers continue purchasing Russian crude. Hindustan Petroleum chair Vikas Kaushal told analysts recently that New Delhi has given no instructions regarding Russian oil. But Trump’s threats seem to have already impacted flows of Russian crude to India. August volumes appear robust, with 33 cargoes discharged through Aug. 13 compared to 41 in July. But with few orders on the books, September deliveries look slim. India imported 2.1 million barrels per day from Russia in June — a near-record high — and 1.6 million b/d in July, according to data from ship tracker Kpler.
