Indian state-owned oil refineries have resumed active purchases of Russian Urals oil after a temporary decline in imports, despite increased pressure from the US and the risk of higher American tariffs. In particular, Indian Oil Corp. and Bharat Petroleum have signed new contracts for the supply of Russian oil with shipments scheduled for September and October.
This is reported by Finway
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Indian importers have gained additional benefits from the increase in the discount on Urals oil to $2.5 per barrel compared to Brent, while in July the discount was only $1. This has been a key factor in the resumption of purchases, as it allows companies to reduce energy resource costs.
In July, the volume of Russian oil imports to India decreased by 24.5% compared to June, reaching 1.5 million barrels per day. Despite the reduction in volumes, Russia’s share in the supply structure remained the highest at 34% of total imports, allowing it to maintain its leadership among suppliers, ahead of Iraq and Saudi Arabia.
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At the beginning of August, Indian oil refineries temporarily halted the signing of new contracts for the purchase of Russian oil in response to calls from US President Donald Trump to limit imports. However, Indian authorities emphasized that further decisions would be made based on market feasibility and the national interests of the country.
“But for now, India states that it is acting based on market logic and national interests.”
Amid energy decisions, India is simultaneously strengthening political and economic ties with Moscow and Beijing. Prime Minister Narendra Modi announced his first visit to China in seven years and a meeting with Xi Jinping. The countries also agreed to resume direct flights and enhance trade and investment cooperation. In response, the President of the Russian Federation plans to meet with Modi in New Delhi by the end of the year. Additionally, Russia has promised to increase trade turnover with India and assist it in countering customs pressure from the US.