India to trim Russian oil purchases ahead of US tariff hike

Refiners in India, among the world’s largest buyers of Russian crude, are preparing to reduce their purchases in the coming weeks. The move represents a modest concession to Washington ahead of a scheduled hike in U.S. tariffs, but it also signals that India has no immediate intention of cutting ties with Moscow.

State-owned and private refiners, including major player Reliance Industries Ltd., are expected to procure between 1.4 million and 1.6 million barrels of crude per day for October loading and beyond, according to sources familiar with the matter who requested anonymity while speaking to Bloomberg because they were not authorised to reveal it. This marks a decrease from the first half of the year, when India’s average daily purchases stood at 1.8 million barrels.

The Trump administration, aiming to reduce the U.S. trade deficit with India, has intensified pressure on the country’s energy dealings with Russia. The U.S. is set to double tariffs on Indian imports, effective August 27, in an effort to curb purchases that are seen as indirectly funding Moscow’s war in Ukraine.

The sources noted that the volumes could change if India secures a trade deal with the U.S., potentially easing Washington’s pressure over its continued crude purchases from Russia.

Spokespeople for India’s oil ministry, Reliance, Nayara Energy Ltd., and state-run refiners Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. did not immediately respond to requests for comment.

Since late July, President Trump has publicly criticised India for its growing imports of Russian crude, which have surged dramatically since the start of the Ukraine war. From minimal purchases prior to 2022, India now accounts for approximately 37% of Moscow’s oil exports, according to Kasatkin Consulting.

U.S. officials have also targeted India’s energy tycoons with public warnings, highlighting the country’s role in sustaining Russian oil revenues. On Monday, the U.S. Department of Homeland Security issued a draft notice confirming the planned tariff increase to 50%, set to take effect on August 27.

By Tamilla Hasanova