India’s state-owned oil refineries have decided to temporarily suspend purchases of oil from the Russian Federation due to increasing pressure from the United States. This move, according to informed sources, is driven by the expectation of official clarifications from the government regarding future energy import policies.
This is reported by Finway
Major Indian Refineries Stop New Tenders for Russian Oil
Among the companies planning to temporarily refrain from purchases are Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. These enterprises have decided not to participate in the upcoming tender purchases of crude oil from Russia, particularly shipments of Urals grade oil that were scheduled to arrive in the Indian market in October. This decision could significantly impact the volume of Russian oil imports to India in the second half of the year.
Political Pressure and Market Uncertainty
The Indian government, led by Prime Minister Narendra Modi, has not yet imposed an official ban on oil imports from Russia. At the same time, the country’s authorities are trying to avoid potential increases in tariffs on energy resources that could be introduced by U.S. President Donald Trump if he returns to power. Against this backdrop of political risks, Indian companies find it prudent to wait for clear government directives before entering into new contracts.
“This could happen,” commented Donald Trump on the possibility of imposing new tariffs against China due to the purchase of Russian oil.
Shipments of Urals oil to India for August and September are likely to proceed according to previous agreements. Meanwhile, the latest shipments have already arrived at Indian ports with minor delays. At the peak of imports, India was purchasing over 2 million barrels of Russian oil daily, whereas prior to the full-scale war in Ukraine, this figure was negligible.