Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week.
The country’s state refiners – Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd – have not sought Russian crude in the past week or so, four sources familiar with the refiners’ purchase plans told Reuters.
100% TARIFF THREAT
On July 14, Trump threatened 100 per cent tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35 per cent of India’s overall supplies.
Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35 per cent of India’s overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates.
India, the world’s third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up 1 per cent from a year ago, according to data provided to Reuters by sources.
Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft.
Last month, Reuters reported that Nayara’s chief executive had resigned after the imposition of EU sanctions, and company veteran Sergey Denisov had been appointed as CEO.
Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported late last month.
