Athira Sethu
Kochi, 1 August 2025
India is the world’s third-largest oil importer. It also purchases more Russian oil transported by sea than any other nation. But Indian state-owned oil companies have recently halted purchases of Russian oil, a Reuters news agency report said.
Since last week, big Indian oil firms such as Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Mangalore Refinery (MRPL) have refused to buy any oil from Russia. None of these companies has issued a word on the subject in public, nor has the government of India.
Why India Stopped Buying Russian Oil
There are two primary reasons why India suspended buying oil from Russia:
- Smaller Discounts: Russia previously sold oil to India at discounted prices compared to other nations. However, the discounts nowadays are extremely minimal, the lowest in 2022. Therefore, it is no longer as economical for India to purchase Russian oil.
- Pressure from America: The US government has been issuing warnings to nations not to purchase oil from Russia as long as there is a war in Ukraine. The former President, Donald Trump, recently promised to impose hefty tariffs (additional taxes) on nations that continue to purchase oil from Russia. He would like nations to desist from conducting business with Russia unless it signs a peace agreement with Ukraine.
Trump also announced that he would put a 25% tariff on Indian goods from August 1, but negotiations continue. Trump also stated that nations can be punished for purchasing Russian oil and arms.
What Is India Doing Now?
As India has ceased purchasing Russian oil, it is importing oil from other sources, such as the Middle East (Abu Dhabi) and West Africa. These are replacing the gap created by the Russian stoppage.
India’s choices are not merely financial, but also geopolitical. Acquiring oil from Russia has drawn ire from Western nations, particularly the United States, which wishes to cut Russia’s revenues during the war.
India is attempting to balance its economic requirements with international political pressure as the war in Ukraine enters its fourth year.
