New Delhi: India continues to purchase crude oil from Russia despite mounting geopolitical pressure, including a tariff threat from the United States. Indian Oil Corporation (IOC) Chairman AS Sahney confirmed on Thursday that Indian refiners remain guided strictly by economic considerations, and there has been no directive to scale up or down imports from Moscow.
“There is no pause,” Sahney told reporters. “We continue to buy, purely based on economic considerations. If the pricing and characteristics of the crude make sense in our scheme of processing, we buy.”
US Tariff Threat Fails to Sway India’s Oil Strategy
The remarks come in response to US President Donald Trump’s announcement last week of an additional 25% tariff on imports from India, raising the total duty to 50%. The move, interpreted as a penalty for India’s continued oil trade with Russia, has sparked concerns about potential retaliatory policy shifts from New Delhi.
However, Indian Oil’s leadership has clarified that no instructions have been received from the government regarding altering sourcing strategies.
“Neither are we being told to buy more nor are we told to buy less from the US or any other destination,” Sahney said.
Russian Crude Still Attractive Despite Narrowing Discounts
While India became the largest buyer of Russian oil in 2022 following the Ukraine conflict, Sahney pointed out that monthly volumes may vary based on the discounts offered.
- Previously, discounts on Russian Urals crude reached as high as USD 40 per barrel, making them extremely attractive to Indian refiners.
- Recently, discounts narrowed to USD 1.5, leading to reduced imports.
- Current discount levels have now risen again to USD 2.70, he added.
Despite this, Sahney emphasized that purchases from Russia continue uninterrupted, and economic logic remains the only guiding principle.
Russia’s Share in Indian Oil Mix Remains High
- Russian crude accounted for 22–23% of IOC’s total crude oil intake during April–June 2025.
- BPCL reported that Russian oil made up 34% of its Q1 intake, despite a temporary dip due to narrowed discounts.
BPCL’s Director (Finance), Vetsa Ramakrishna Gupta, noted in an investor call that they plan to return to a 30–35% share for Russian oil, provided no sanctions are imposed.
India’s Energy Policy: Sovereignty First, Sanctions Compliant
India has not violated any international sanctions, Sahney clarified, asserting that there are no active sanctions on Russian crude.
“India has not done anything that violates any sanctions,” he said. “Such purchases will continue unless sanctions are imposed.”
The IOC Chairman also refuted speculation that India may increase US oil imports to “placate” Washington, reaffirming a non-political, market-based approach to oil procurement.
From Marginal to Mainstream: Russia’s Rise in Indian Oil Imports
Before February 2022, Russian crude accounted for less than 1% of India’s oil imports. However, post-sanctions from the West, Russia offered steep discounts, prompting India to ramp up its imports and make Russia its top oil supplier, now meeting around 30% of national crude requirements.
