India to continue Russian oil imports despite Trump’s threats, officials say

India will continue purchasing oil from Russia despite threats of penalties by US President Donald Trump, two Indian government sources told Reuters on August 2, underscoring New Delhi’s strategic energy ties with Moscow amid shifting geopolitical pressures.

The remarks follow Trump’s recent post on Truth Social, in which he warned of additional penalties against India for its imports of Russian oil and arms. The warning comes on top of a new 25% tariff imposed on Indian exports to the United States, Caliber.Az reports. 

On August 1, Trump told reporters he had been informed that India would stop buying oil from Russia. However, Indian officials familiar with the matter said there would be no immediate change in purchasing behaviour.

"These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight."

Justifying the country’s ongoing imports, the second official said: "India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector."

Unlike oil from Iran and Venezuela, Russian crude is not directly sanctioned. According to the source, India has been acquiring it below the European Union’s price cap.

In a parallel report, The New York Times also cited two unnamed senior Indian officials as saying India’s policy on oil imports from Russia remains unchanged. 

At a routine press briefing on August 1, Foreign Ministry spokesperson Randhir Jaiswal stated, “India has a steady and time-tested partnership with Russia.” Regarding India’s energy needs, he said: “On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances.”

India’s leading oil supplier

Russia remains India’s top oil supplier, accounting for about 35% of its overall crude imports. India, the world’s third-largest oil importer and consumer, brought in an average of 1.75 million barrels per day of Russian crude between January and June this year—up 1% compared to the same period in 2024, according to data cited by Reuters.

Despite official insistence on maintaining oil ties, market behaviour indicates shifts. Indian state refiners reportedly stopped purchasing Russian oil after July discounts narrowed to their lowest since 2022, when Western sanctions were first imposed on Moscow. Lower Russian exports and steady demand have reduced the price incentives for Indian buyers.

Major state-run refiners including Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery and Petrochemical Ltd have not placed new orders for Russian crude in the past week, according to four Reuters sources.

By Sabina Mammadli