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New Indian Express
03-08-2025
- Business
- New Indian Express
Trump's claim on Russian crude rubbished
NEW DELHI: US President Donald Trump on Saturday said he had heard about India stopping purchasing Russian crude, adding it would be a good step, a claim the government denied. Trump made the remark after announcing 25% reciprocal tariff on Indian imports, along with additional penalties linked to Russian crude imports. 'I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens,' Trump said. The petroleum ministry, however, clarified that India has not stopped importing Russian crude. A ministry official said Indian oil marketing companies (OMCs) continue to buy Russian oil, with supply decisions based on factors such as price, crude grade, inventories, logistics, and other economic considerations. 'These are long-term oil contracts. It is not so simple to just stop buying overnight,' the official said. The official also emphasised that Indian OMCs do not import crude from Iran or Venezuela — both sanctioned by the US. Russian oil, however, is not sanctioned by the US or the EU. Instead, it is subject to the G7-EU price-cap mechanism, which aims to restrict Russia's revenue while ensuring global oil supplies continue. India has consistently complied with the US-recommended price cap of $60 per barrel on Russian oil. Recently, the EU proposed a lower price cap of $47.6 per barrel, to be enforced from September. The official said India's purchases remain legitimate and fully within international frameworks.
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First Post
03-08-2025
- Business
- First Post
No change in India's Russian oil import policy despite Trump's sanction threats: Report
India has said it will continue purchasing crude from Russia, despite Trump's remarks that it has stop buying Russian oil, clarifying that there's been no change in its energy policy, says report. read more 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. STORY CONTINUES BELOW THIS AD 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. STORY CONTINUES BELOW THIS AD
