Media: India continues Russian oil imports despite US sanctions

Indian oil refiners are continuing to purchase crude oil from Russian suppliers, according to sources cited by the news agency ANI on August 2.

This clarification followed a statement from US President Donald Trump earlier in the day, in which he remarked, “I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not.”

Responding to Trump's assertion, sources emphasised that Indian refiners base their sourcing decisions on a range of economic and logistical considerations, including pricing, crude quality, inventory levels, and transportation.

Explaining the rationale behind India's continued imports of Russian oil, sources noted that Russia is the world's second-largest crude oil producer, with an output of around 9.5 million barrels per day — accounting for nearly 10% of global demand. Russia also ranks as the second-largest oil exporter, shipping approximately 4.5 million barrels per day of crude and another 2.3 million barrels per day of refined petroleum products.

They recalled that concerns about Russian oil being excluded from global markets, along with disruptions in traditional trade flows, had driven Brent crude prices to surge as high as $137 per barrel in March 2022.

“In such a volatile environment,” the sources explained, “India, which is the third-largest consumer of energy globally and imports 85% of its crude oil, strategically adjusted its supply sources to ensure access to affordable energy — all while adhering to established international norms.”

The sources argued that India's absorption of discounted Russian crude, combined with concurrent OPEC production cuts of 5.86 million barrels per day, helped avert even steeper price spikes that could have pushed oil well beyond the 2022 peak and exacerbated global inflation.

Defending the country’s energy policy, the sources said that while India’s oil imports are guided by national interest, they have also contributed to maintaining global energy stability.

“India’s pragmatic approach ensured continuity of supply, price stability, and overall market balance — all while operating in full compliance with international frameworks,” they said.

They also clarified that Russian oil has not been placed under formal sanctions by either the United States or the European Union. Instead, it is subject to the G7/EU-imposed price-cap mechanism, which seeks to restrict Moscow’s revenues while keeping global supply lines open.

“India has acted as a responsible global energy participant, maintaining liquidity in the oil market and helping keep prices stable. All of India’s crude imports from Russia have been within the bounds of international legitimacy,” the sources added.

They further pointed out that India’s state-owned oil marketing companies (OMCs) have refrained from purchasing crude from Iran or Venezuela — two countries that are actually under direct US sanctions. Moreover, Indian OMCs have consistently complied with the US-endorsed $60-per-barrel price cap on Russian oil. A new cap of $47.60 per barrel, recently recommended by the EU, is scheduled to take effect in September.

Trump, earlier this week, announced that the US would impose a 25% tariff — plus an additional penalty — on goods imported from India. He justified the measure by accusing India of buying “the vast majority” of its military and energy supplies from Russia, “at a time when everyone wants Russia to stop the killing in Ukraine.”

Meanwhile, on July 31, Reuters reported that Indian state-run refiners had temporarily halted purchases of Russian oil due to the looming threat of US tariffs and declining price discounts.

However, sources later rejected these reports and also dismissed Trump's remarks, which echoed the earlier media claims, reaffirming that Indian refiners have not suspended imports from Russia.

By Tamilla Hasanova