Russia's oil exports to India will remain uninterrupted, reports suggest from government circles
In the midst of escalating geopolitical tensions, India's oil imports from Russia have become a subject of global interest.
President Trump has threatened 100% tariffs on countries that continue to buy Russian oil, unless Moscow reaches a major peace deal with Ukraine. However, the White House has yet to respond to requests for comment regarding India's oil purchases from Russia.
India's foreign ministry spokesperson, Randhir Jaiswal, stated that India looks at what is available in the markets for energy sourcing. This stance is echoed by the Indian government, which has not given any direction to oil companies to cut back imports from Russia.
Despite threats of penalties and tariffs, India's large private refiners like Reliance Industries and Nayara Energy (partly owned by Russia's Rosneft) continue to import significant volumes of Russian oil. Nayara Energy, a major buyer of Russian oil, has been sanctioned by the European Union due to its majority ownership by Russian entities. The company's chief executive recently resigned after the imposition of these sanctions, with company veteran Sergey Denisov appointed as CEO.
Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes due to new EU sanctions on the Russia-backed refiner.
India significantly increased its purchases of Russian oil after Western sanctions on Russia began in 2022, with Russian crude rising from less than 0.2% to about 35-40% of India's oil imports by 2025. This shift helped India lower energy costs and stabilize fuel prices domestically.
However, due to the recent shrinking discounts on Russian crude, Indian refiners have pulled back from purchasing it. According to reports, Indian state refiners like Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd have not sought Russian crude in the past week.
Jaiswal added that India has a "steady and time-tested partnership" with Russia, and New Delhi's relations with various countries stand on their own merit and should not be seen from the prism of a third country.
Two unnamed senior Indian officials told The New York Times that there has been no change in Indian government policy regarding oil purchases from Russia. This stance was further emphasized by Jaiswal, who stated that India's relations with Russia are based on mutual trust and understanding.
Despite the ongoing tensions, Russia remains the top oil supplier to India, accounting for about 35% of India's overall supplies. India has long-term oil contracts with Russia, ensuring a continued flow of Russian oil to the country.
In conclusion, while India's state-owned oil companies have reduced or paused imports of Russian crude due to geopolitical pressures, private players like Reliance Industries and Nayara Energy continue to maintain the India-Russia oil trade, albeit somewhat constrained under US and Western pressure.
- The ongoing tensions between war-and-conflicts and politics, specifically between the United States and Russia over energy resources, have led to threats of 100% tariffs on countries that continue to buy Russian oil.
- In the midst of these threats and policy-and-legislation changes, India's foreign ministry spokesperson, Randhir Jaiswal, has stated that India's stance on energy sourcing remains unchanged, focusing on market availability.
- Despite European Union sanctions on Nayara Energy due to its majority ownership by Russian entities, large private refiners like Reliance Industries and Nayara Energy continue to import significant volumes of Russian oil in the oil-and-gas industry, though their operations may be somewhat constrained under US and Western pressure.
- Amidst general-news reports of shifting relationships and geopolitical tensions, it is notable that Russia remains the top oil supplier to India, accounting for about 35% of India's overall supplies, due to long-term oil contracts and steady partnership between the two countries.
