India Stands Firm on Russian Oil Purchases Amidst U.S. Sanction Threats

India plans to maintain its oil imports from Russia, despite recent threats of penalties from U.S. President Donald Trump, as confirmed by two unnamed government sources. They indicated that changing this policy is complicated due to existing long-term contracts, making it challenging to cease purchases abruptly. Reports suggest that India's continued acquisition of Russian oil has played a key role in keeping global oil prices stable, even in the face of Western sanctions against Russia’s oil sector.

Differentiating Russia’s crude from oil from Iran and Venezuela, which face strict sanctions, Indian officials noted that Russian oil is purchased below the current cap set by the European Union. Two senior officials from India have stated that there has been no shift in the governmental stance towards these imports. Despite the lack of an official comment from Indian authorities, Foreign Ministry spokesperson Randhir Jaiswal highlighted the robust partnership between India and Russia, pointing out that India’s energy sourcing decisions are made based on availability and the global market situation.

While India seems unfazed by Trump’s sanctions threats, recent reports indicate that state-owned refineries in India have paused their purchases of Russian oil as price discounts have diminished, attributed to decreased Russian exports and consistent demand. Companies such as Indian Oil Corporation and Hindustan Petroleum have not sought additional Russian crude in recent weeks. Moreover, Nayara Energy, a refinery that has significant ties with Russian interests, is currently facing challenges due to recent EU sanctions, which have affected its operations and caused leadership changes, including the resignation of its chief executive.