India shifts oil purchases away from Russia before Alaska talks

India’s state refineries are sourcing more from the United States, Brazil, and the Middle East for September and October shipments as tensions over sanctions and tariffs rise.

India shifts oil purchases away from Russia before Alaska talks

Indian Oil Corp. and Bharat Petroleum Corp. have lined up supplies from the United States, Brazil, and Middle Eastern producers for September and October deliveries, Bloomberg reported. The move signals a deliberate step back from Russian crude as New Delhi approaches the Alaska summit between Trump and Putin. While Indian refineries have long depended on Middle East oil and became major buyers of Russian seaborne crude in recent years, the current sourcing reflects a broader shift in response to policy risks and price dynamics.

Trump’s tariff threats on Indian energy purchases from Russia have accelerated the pivot. Saudi Arabia will supply 22.5 million barrels to India in September, the largest monthly shipment since 2024, alongside continued imports from the United States and Brazil. Private refiners such as Reliance Industries and Nayara Energy may still buy Russian crude under term contracts, but banks and shipping firms remain wary of sanctions, complicating the Russian trade. The broader picture shows energy diplomacy sorting itself through price and policy as China absorbs more of Russia’s crude, while India recalibrates its long‑term supplier mix and security of supply.

This shift is a clear signal that sanctions and tariff politics are reshaping energy diplomacy in real time. India is balancing its strategic ties with the United States and Gulf producers against a history of close energy links with Russia, seeking reliability and price stability for domestic consumers. The move also highlights the risk premium now embedded in oil trades, where banks and insurers assess sanction exposure and cargo routes with greater care. If Alaska talks produce only a superficial consensus, the pattern of diversification is likely to continue as buyers seek resilience in a multipolar energy landscape.

Highlights

Energy markets keep adapting as diplomacy and pricing collide