India seeks alternative oil supplies around the world

Indian refiners, in response to US pressure, are diversifying their crude oil sources ahead of a summit between US President Donald Trump and Russian President Vladimir Putin. Trump has demanded that India stop buying discounted Russian crude and has doubled tariffs on Indian goods, saying imports were fueling “the war machine.”

State-owned Indian refiners, including Indian Oil Corp. and Bharat Petroleum Corp., have purchased large volumes of non-Russian crude for September-October delivery from the US, Brazil, and the Middle East. These spot market purchases supplement supplies from long-term sellers like Saudi Arabia, which plans to ship about 22.5 million barrels to India in September, Caliber.Az reports via Bloomberg.

The upcoming Trump-Putin meeting in Alaska on August 15 is closely watched for indications on whether the US will ease pressure on Russian oil sales. India’s Foreign Affairs Minister S. Jaishankar will visit Moscow next week to meet Russian counterpart Sergei Lavrov on August 21.

The talks are expected to cover “key issues on our bilateral agenda, as well as key aspects of cooperation within international frameworks.”

India, historically reliant on Middle Eastern oil, imported about 1.7 million barrels per day of Russian crude in mid-2025, nearly 37% of its overseas purchases, mostly Urals crude.

While state refiners are pausing spot purchases, private refiners like Reliance Industries Ltd. and Nayara Energy are expected to continue Russian crude purchases under term contracts.

Russian producers have cut prices for Urals crude for September-October delivery, seeking to divert supplies to China amid India’s shift.

However, Indian importers face banking and logistics hurdles due to the threat of US secondary sanctions. Some traders say private players may increasingly use smaller banks, Chinese yuan, and dark-fleet tankers to continue Russian crude purchases.

Trump has warned he would impose “very severe consequences” if Putin does not agree to a deal later this week, a threat that remains difficult for the oil market to fully quantify.

By Sabina Mammadli