Indian state-owned refineries stop Russian oil purchases

State-owned Indian refineries halt purchases of Russian oil following tariff threats from Trump.

Indian refineries stop Russian oil purchases amid Trump tariff threats

Indian state-owned refineries have stopped buying Russian oil as of last week, in response to recent threats of tariffs from President Donald Trump and a decrease in price discounts. Reports indicate that the halt coincides with Trump's announcement of a 25% tariff on Indian goods starting August 1, stemming from India's ongoing purchases of Russian energy and arms during the ongoing conflict in Ukraine. India, which had significantly increased its imports of Russian oil following the invasion of Ukraine, is now looking to Middle Eastern and West African oil sources to meet its needs. Despite the reliance of private refiners like Reliance Industries on Russian crude, state-owned companies represent a major portion of India's refining capacity, accounting for more than 60% of the total.

The decision by Indian refineries to suspend Russian oil purchases reflects the complexities of international trade amid geopolitical tensions. While India's growing dependence on Russian energy offered short-term benefits, the recent tariff threats expose vulnerabilities in India's energy strategy. This situation highlights the broader implications of U.S. foreign policy on global oil markets and raises crucial questions about the future of energy security in an increasingly polarized world.

Highlights

India's energy strategy may need reassessment as global pressures mount.