India seeks alternative crude supplies as Trump pressures halt on Russian oil

Indian refiners, including state-run Indian Oil Corp. and Bharat Petroleum, are scouring global markets for alternative crude amid mounting US pressure to stop buying Russian oil, ahead of a summit between US President Donald Trump and Russian President Vladimir Putin in Alaska on August 15, according to a latest report by Bloomberg.

Trump, seeking leverage in talks with Putin, last week doubled tariffs on Indian goods and warned that continued purchases of cut-price Russian crude, which he said fuels the Kremlin’s “war machine,” would carry “very severe consequences.” The move has prompted India’s state refiners to diversify sourcing for September–October deliveries, including cargoes from the US, Brazil, and the Middle East.

Saudi Arabia is supplying about 22.5 million barrels for September loading, the highest monthly volume since September 2024, according to analytics firm Kpler.

India, historically reliant on Middle Eastern crude, imported 1.7 million barrels per day of Russian oil in mid-2025, accounting for nearly 37% of its overseas purchases. Most imports were Urals grade, which can be swapped with Middle Eastern barrels.

Private refiners such as Reliance Industries and Nayara Energy are expected to continue buying Russian crude via term contracts, while state refiners are holding back on spot purchases for October.

Foreign Affairs Minister S. Jaishankar is scheduled to visit Moscow on Aug. 21 with Petroleum Secretary Pankaj Jain to meet Russian counterpart Sergei Lavrov. Industry watchers say the meeting could provide clarity on whether US sanctions will tighten or relax, influencing future imports.

Russian producers, anticipating a possible decline in Indian demand, have cut prices for September–October Urals shipments and are actively courting Chinese buyers. Indian importers, however, face hesitation from banking and logistics partners concerned about US secondary sanctions.

Traders note that some private refiners may increasingly resort to smaller banks, Chinese yuan payments, and “dark-fleet” tankers to continue purchases.

The potential shift comes in a global market awash with oil, with OPEC+ barrels returning and weaker demand from major economies like China, making it technically feasible for India to replace much of its Russian supply.

Analysts say the US-Russia summit and India’s Moscow talks will be closely watched, as any outcome could significantly impact the oil trade and geopolitical alignments.

By Tamilla Hasanova