India is unlikely to halt its oil imports from Russia, despite threats of steep hike in tariffs and penalties from the United States. US President Donald Trump claimed on Saturday that he "heard" unconfirmed reports of India halting oil imports from Russia.
Indian oil companies are continuing to buy oil from Russia, though no procurement was made last week, Reuters reported. Sources told Reuters India's state refineries stopped buying Russian oil after July discounts narrowed to their lowest since 2022, owing to sanctions and lower demand.
Sources in the know of developments told Reuters that Russian oil procurement cannot be stopped overnight. "These are long-term oil contracts. It is not so simple to just stop buying overnight," an official told the publication. Another official said the Russian oil imports have helped India to avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector, the publication reported.
Announcing 25 per cent tariff on imports from India to the US, President Trump said India would also face an additional penalty for procuring Russian oil and defence equipment. US Secretary of State Marco Rubio said India's relationship with Russia was an irritation in India-US ties. According to the US, India's oil procurement from Russia was helping Moscow to sustain its war against Ukraine.
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A day after tariff announcement, Trump claimed on Saturday that India is halting oil imports from Russia. "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, but that's a good step. We'll see what happens," Trump said.
However, during a weekly briefing on Friday, Ministry of External Affairs Spokesperson Randhir Jaiswal said as far as sourcing India's energy requirements is concerned, "we take decisions based on the price at which oil is available in the international market and depending on the global situation at that time."
