India to Continue Russian Oil Imports Despite Trump’s Threats of Penalties
India has reaffirmed its commitment to purchasing oil from Russia, despite ongoing threats of penalties from U.S. President Donald Trump. According to two anonymous Indian government sources speaking to Reuters on Saturday, the country will not alter its oil imports from Russia in the short term, despite the potential for U.S. sanctions.
Trump indicated in a Truth Social post last month that India would face additional penalties for purchases of Russian arms and oil.
Trump, who has been vocal about curbing Russia’s energy exports amid the ongoing war in Ukraine, had warned last month that India could face additional penalties for its continued oil and arms purchases from Russia. In a post on his social media platform, Truth Social, Trump suggested that India would no longer be allowed to buy Russian oil, a sentiment he reiterated on Friday during a press briefing.
However, the Indian sources confirmed that the situation would remain unchanged for now. One of the sources explained that the country’s oil contracts with Russia are long-term and cannot be abruptly terminated. “These are long-term oil contracts,” the source said. “It is not so simple to just stop buying overnight.”
A second source defended India’s oil purchases from Russia, highlighting that the importation of Russian crude has helped to stabilize global oil prices, which have remained relatively subdued despite Western sanctions on Moscow’s oil sector. Indian officials also noted that Russian oil, unlike that from Iran and Venezuela, is not subject to direct sanctions, with India purchasing it at rates below the price cap set by the European Union.
The New York Times also reported on Saturday, citing unnamed senior Indian officials, that there has been no shift in India’s stance regarding Russian oil.
Foreign ministry spokesperson Randhir Jaiswal reiterated that India maintains a “steady and time-tested partnership” with Russia. “On our energy sourcing requirements, we look at what is available in the markets and consider the prevailing global situation,” Jaiswal said.
Trump’s Pressure on Allies and India’s Energy Strategy
The White House has not responded to requests for comment on the matter.
Trump has made ending Russia’s war in Ukraine a central focus of his policy agenda since regaining office. In recent weeks, he has expressed increasing frustration with Russian President Vladimir Putin, threatening 100% tariffs on U.S. imports from countries that continue to buy Russian oil unless Moscow reaches a significant peace agreement with Ukraine.
Russia has become the largest oil supplier to India, the world’s third-largest oil importer. In the first half of this year, India imported roughly 1.75 million barrels of Russian oil per day, a 1% increase from the previous year. This accounts for approximately 35% of India’s overall oil supply.
Despite these ongoing purchases, Indian state refiners have recently ceased buying Russian oil after discounts narrowed to their lowest levels since the onset of sanctions in 2022. This development is attributed to a combination of reduced Russian exports and steady global demand. Major Indian oil refiners such as Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery and Petrochemicals Ltd have reportedly refrained from seeking Russian crude in recent weeks.
Nayara Energy Faces EU Sanctions
Meanwhile, Nayara Energy, a refinery in which Russian entities, including oil giant Rosneft, hold a majority stake, has faced additional challenges. The company, a significant buyer of Russian crude, was recently sanctioned by the European Union. As a result, Nayara’s CEO resigned, and several vessels carrying oil products from the refinery have been unable to discharge their cargoes, hindered by the new sanctions.
As the geopolitical situation continues to evolve, India’s approach to Russian oil imports remains a significant point of contention between the U.S. and its allies. While India’s oil demand continues to be met by Russian supplies, the nation’s energy strategy and diplomatic balancing act will likely remain in the spotlight in the coming months.
