Summary
- Indian
authorities confirm the country will continue importing Russian oil
regardless of U.S. pressure and statements from President Trump. - President
Trump’s claim that India is halting Russian oil imports has been formally
denied by Indian officials, citing national interest as their decision
driver. - India’s
oil ministry and industry leaders stress that crude import choices are
based on commercial, economic, and market factors, not political influence. - Indian
state and private refiners have scaled back Russian oil purchases recently
due to lower discounts and global sanctions but continue significant
imports. - The
United States and the European Union have increased diplomatic and
sanction-related pressure on India to curb Russian oil trade. - India’s
government and oil sector officials reiterate that its energy security
will not be compromised by foreign threats or penalties. - Official
data shows a decline in India’s Russian oil imports for July, partially
offset by increased purchases from Iraq, Saudi Arabia, UAE, and others. - Petroleum
Minister Hardeep Singh Puri affirms India’s expanded supplier base and
commitment to stable, affordable energy markets despite geopolitical risks. - Indian
policy on oil imports from Russia is under active government review amid
rising international pressures and industry adaptation needs. - Experts
warn that any rapid shift away from Russian oil would raise costs and risk
energy security for India, making pragmatic engagement essential.
The recent developments in India evolving approach to energy policy has come under
intense international scrutiny, but officials remain emphatic that all major
oil procurement decisions are anchored in commercial sensibility and the
country’s strategic imperatives. As the world’s third-largest oil consumer
faces tightened Western sanctions and mounting diplomatic pressure,
particularly from the United States and the European Union, Indian authorities
and industry leaders are navigating a complex landscape of economic requirements,
global market shifts, and national interest. The coming months are expected to
test India’s ability to balance its urgent energy needs against broader
geopolitical currents, even as the government affirms its right to pursue
independent and pragmatic sourcing strategies.
What Did President Trump Say About India’s Russian Oil
Purchases?
As reported by The Indian Express, U.S. President Donald Trump stated earlier this week that he heard India will no longer be
buying oil from Russia, describing this move as “a good step”
but expressing uncertainty about the information’s accuracy. In remarks
captured by The Economic Times, Trump reiterated:
“Well, I understand
India no longer is going to be buying oil from Russia. That’s what I heard. I
don’t know if that’s right or not, but that’s a good step. We’ll see what
happens”.
Yet, this assertion has been swiftly and unequivocally
rebuffed by Indian authorities and industry insiders.
How Did Indian Officials Respond to Trump’s Comments?
Quoting government sources, The Times of India, Economic
Times, and news agency ANI, several outlets have reported that Indian oil
refiners are continuing to purchase crude from Russia, guided by economic
factors, supply logistics, inventory needs, and prevailing market prices.
“Indian oil refiners continue to source oil from Russian suppliers. Their
supply decisions are guided by price, grade of crude, inventories, logistics
and other economic factors,”
sources told ANI, as cited in The Times of India and
The Economic Times.
Randhir Jaiswal, Ministry of External Affairs Spokesperson,
clarified:
“We take decisions based on the price at which oil is available
in the international market and depending on the global situation at that
time,”
emphasizing that these are commercial rather than political
decisions.
What Is Driving India’s Continued Imports from Russia?
According to sources quoted by The Economic Times and The
Times of India, after the global market disruptions caused by the war in
Ukraine and significant OPEC+ production cuts, Russian oil has been available
at a discount. For a country with 85% crude oil import dependency, like India,
this represents a pragmatic choice to secure affordable energy while fully
complying with international regulations.
Industry and trade insiders speaking with The Indian Express
note that while some state-owned refiners have reduced or halted future Russian
oil contracts mainly due to pricing and increased Western pressure private
sector refiners continue to buy Russian oil, though at slightly lower volumes.
Sumit Ritloia, Lead Research Analyst at Kpler, told The
Indian Express that mounting U.S. tariff threats and EU sanctions represent
“a double whammy for Indian refiners,” sharply curtailing their
procurement flexibility and increasing compliance risks and costs.
Is India Facing International Sanctions for Russian Oil
Imports?
As The Economic Times and Economic Times sources emphasize,
Russian oil itself is not subject to global sanctions. Instead, it is regulated
by a G7/EU price-cap mechanism meant to limit Russian revenues while keeping
world supplies flowing. Indian refiners have adhered to the $60 per barrel
price cap recommended by the U.S. and adjusted further as the EU lowered its
recommended cap. Notably, Indian Oil Marketing Companies (OMCs) do not purchase
Iranian or Venezuelan crude, which are fully sanctioned by the U.S..
Reuters and The New York Times also highlight that Indian
officials maintain confidence in the legality of their continued Russian
imports and see them as vital, both for national interest and for supporting
global market stability.
Have Indian Oil Imports from Russia Actually Declined?
Data published by The Indian Express and cited by Kpler
demonstrates that Russian oil deliveries to India dropped to 1.6 million
barrels per day in July 2025, a 24% decrease from June and 23.5% lower than a
year earlier. Russian crude, previously accounting for nearly 45% of India’s
oil basket, dropped to about 34% in July.
At the same time, imports from Iraq, Saudi Arabia, UAE, the
US, Nigeria, and Kuwait filled some of this reduction. This realignment
reflects both heightened Western scrutiny on Russian oil and the commercial
response by Indian buyers to narrowing discounts.
What Do Experts and Policymakers Say About Energy Security?
Speaking at a recent event, Petroleum Minister Hardeep Singh
Puri reassured that India has diversified its oil sources from 27 countries to
about 40. He stated,
“I don’t feel any pressure in my mind. India has
diversified the sources of supply… I’m not worried at all. If something
happens, we’ll deal with it…there is sufficient supply available”.
Nonetheless,
energy experts acknowledge that replacing large Russian volumes would take
several months and result in higher costs for Indian refiners and consumers.
What’s Next for India’s Oil Import Policy?
Deliberations are ongoing between Indian government
officials and energy stakeholders regarding future policy steps, according to
The Indian Express. Decisions are expected to be influenced by ongoing
U.S.-India negotiations, potential escalation of Western sanctions, and broader
geopolitical developments affecting global energy trade and the Russia-Ukraine
conflict.
Sources told Reuters and The New York Times that India is
expected to seek a flexible approach, possibly negotiating a transition or
wind-down period, rather than adopting abrupt supply changes that could
destabilize its economy and energy security.
How Do Indian Officials Justify Their Stance Amid Western
Pressure?
Reporters from The New Indian Express and Sweden Herald have
documented Indian sources stating the continued purchase of Russian oil is
based on national interest, economic rationale, and energy security. They
argue India’s approach has also contributed to keeping global oil prices
stable, benefiting not only Indian consumers but the wider world economy.
What Is the International Reaction?
As highlighted by The Indian Express, European Union
sanctions effective from January 2026 will ban import of fuels derived from
Russian-origin crude, directly impacting Indian refiners who export to Europe. U.S.
officials, meanwhile, continue to hint at further secondary sanctions if India
does not reduce its Russian oil purchases.
Despite these pressures, Indian government messaging remains
clear: energy diplomacy will remain pragmatic and focused on national
interests, while Indian companies will adapt sourcing strategies to ensure
stable and affordable supplies for the country.
