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No change in India's Russian oil import policy despite Trump's sanction threats: Report
Indian officials have said that oil refineries will continue purchasing crude from Russia, dismissing claims by US President Donald Trump that New Delhi has halted imports, news agency ANI reported. The clarification comes as Washington prepares to impose fresh sanctions next week on nations maintaining energy ties with Moscow amid the war in Ukraine.
Earlier, speaking to reporters on Friday, Trump said he had 'heard' India would stop buying Russian oil—calling it a 'good step'—just days after he accused New Delhi of having deep trade and military ties with the Kremlin. '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,' he said.
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Indian officials: No directive to halt Russian crude
However, Indian government sources, cited by ANI and Reuters, rejected Trump's assertion. 'There has been no change in policy. Oil companies make sourcing decisions based on price, quality, logistics, and market conditions. No directive has been issued to stop Russian imports,' an official said.
Russia remains a key crude supplier to India
India, the world's third-largest oil importer, has become a major buyer of Russian crude since Western sanctions pushed Moscow to offer steep discounts. Between January and June this year, India imported about 1.75 million barrels per day of Russian oil—accounting for 35% of its total crude imports.
A government source defended the policy, saying India's purchases had helped stabilise global oil markets. 'Had India not absorbed discounted Russian crude—alongside OPEC+ production cuts—prices could have soared past the 2022 high of $137 a barrel,' the official said.
India adheres to G7-EU price cap mechanism
Unlike oil from Iran or Venezuela, Russian crude is not directly sanctioned by the US or EU. It is subject to a G7-EU price cap mechanism aimed at curbing Kremlin revenues while maintaining global supply. Indian oil firms have been buying within this price cap, officials said, maintaining that imports are in line with international norms.
Trump's latest comments come amid his new executive order imposing 25 per cent tariffs on Indian goods and a warning of penalties for countries importing Russian oil or weapons. He has given an August 8 deadline for Russian President Vladimir Putin to end the war or face further punitive action.
Long-term oil contracts still in force, say officials
Despite the pressure, two senior Indian officials told The New York Times that state-run refiners had not received any instructions to halt Russian purchases. 'These are long-term oil contracts. It is not so simple to just stop buying overnight,' one official explained.
There have been recent reports that Indian refiners such as Indian Oil Corp and Bharat Petroleum paused fresh Russian orders after July discounts narrowed to their lowest levels since sanctions began in 2022. But sources say this was a commercial—not political—decision.
Energy policy driven by market logic: MEA
At a weekly press briefing, External Affairs Ministry spokesperson Randhir Jaiswal reiterated that India's energy decisions are guided by market factors: 'We take decisions based on price, availability, and the global situation.'
Trump slams India's trade barriers, defense ties with Moscow
While Trump has often praised India as a 'friend,' he has also criticised its tariffs and defense ties with Russia. 'India has the most strenuous and obnoxious non-monetary trade barriers,' he said, noting that it remains one of Russia's top arms and energy customers.
Still, Indian officials insist their oil policy serves both national interests and global market stability—and they are unlikely to back down, at least for now.
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