The image used only for the representation purpose. Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Limited – have not demanded either Russian crude last week. Photo Credit: Reuters
Industry sources said that the Indian state’s refiners have stopped buying Russian oil in the last one week as this month’s discount has been narrowed and US President Donald Trump has warned countries not to buy oil from Moscow.
India, the third largest oil importer in the world, is the largest buyer of Cyborn Russian crude, an important revenue earner for Russia as it works for war in Ukraine for a fourth year.
The state’s state refiner – Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Limited – have not demanded either Russian crude last week, are familiar with four sources. Reuters.
The Ministry of IOC, BPCL, HPCL, MRPL and Federal Oil did not immediately respond to Reuters’ requests for comments.
Sources said that four refiners regularly buy Russian oil and have turned into markets for replacement supply – mostly the Middle Eastern Grade such as Abu Dhabi’s merger crude and West African oil, said sources.
Private refiner Reliance Industries and Naria Energy, which is a majority of Russian institutions including Oil Head Rosneft, are annual deals with Moscow and the largest Russian oil buyers in India.
On 14 July, Mr. Trump threatened 100% tariffs on countries that buy Russian oil until Moscow reaches a major peace deal with Ukraine.
Sources said the Indian refiners are pulling back from Russian crude as the discounts have decreased since 2022, when the Western sanctions were first imposed on Moscow, due to low Russian export and stable demand, sources said.
Refiners are afraid that the latest European Union may complicate foreign trade, including raising funds of the European Union – even for buyers who follow the price cap. India has reiterated opposition to “unilateral sanctions”.
Mr. Trump announced 25% tariff on goods imported from India from August 1 on Wednesday (July 30, 2025), but said the negotiations were on. He also warned of potential punishment for the purchase of Russian weapons and oil.
On Monday (July 28, 2025), Mr. Trump spent a secondary approval time limit on Russian export buyers since the last 50-day period, if Moscow does not agree to a peace agreement with Ukraine.
Russia is the top supplier in India, which is about 35% of India’s overall supply.
Private refiners bought India’s average of 1.8 million barrels per day in the first half of 2025, while about 60% of Russian oil imports per day, while the state’s refiner who controls India’s total 5.2 million BPD refining capacity more than 60% of the total 5.2 million BPD refining capacity bought the remaining.
Traders said that Reliance bought Abu Dhabi Murban Crude for loading in October this month, an unusual step by the refiner, the traders said.
Published – 01 August, 2025 06:22 am IST
