India will continue purchasing Russian crude under long-term contracts despite U.S. President Donald Trump’s threats of penalties, senior government officials confirmed Saturday. The decision underscores India’s commitment to energy security and its "steady, time-tested partnership" with Russia, as emphasized by Foreign Ministry spokesperson Randhir Jaiswal.
Officials clarified that halting imports is impractical due to binding agreements. "These are long-term oil contracts," one source stated. "It’s not simple to stop overnight". While state refiners (Indian Oil, Hindustan Petroleum, Bharat Petroleum, and Mangalore Refinery) paused new orders last week, this reflected narrowed Russian discounts, not policy shifts. Russia remains India’s top supplier, providing 35% of its crude (1.75 million barrels daily).
India’s imports adhere to international norms, operating within the G7/EU price cap mechanism. Officials argue these purchases prevent global price surges: without discounted Russian crude and OPEC+ cuts, oil could exceed March 2022’s peak of $137/barrel, worsening inflation. Jaiswal reiterated that energy decisions prioritize "market availability, pricing, and global conditions", not external pressure.
The EU’s recent sanctions on Nayara Energy, a Rosneft-backed refinery disrupted three oil-product shipments and forced CEO Prashant Modi’s resignation. New CEO Sergey Denisov now navigates these hurdles while Nayara continues sourcing Russian crude. This contrasts with state refiners’ temporary pause, highlighting policy coherence amid market volatility.
Trump threatened 100% tariffs on Russian oil buyers unless Moscow agrees to a Ukraine peace deal by August 8. Though he claimed India halted imports, officials swiftly rebutted this. With no White House comment on India’s stance, analysts note New Delhi’s balancing act: securing affordable energy while managing U.S. relations.