India Halts Russian Oil Buys as US Sanctions Disrupt Payments, Report Says

India’s state-run refiners have temporarily paused spot purchases of Russian crude oil following recent tightening of US sanctions that complicated payment mechanisms, industry sources told Reuters on July 30.

The disruption affects major state processors such as Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), and Hindustan Petroleum Corp Ltd (HPCL). These companies are reportedly unable to make payments in Chinese yuan or UAE dirhams—methods previously used to bypass Western restrictions.

Attempts to settle trades in alternative currencies have stalled due to stricter scrutiny by intermediary banks and the withdrawal of some institutions from Russia-related transactions.

Read more

Category

War in Ukraine

Russia’s War Chest Is Drying Up: How Sanctions and Oil Prices Bite Into the National Wealth Fund

Jul 03, 2025 14:29

Private Indian refiners such as Reliance Industries and Nayara Energy, which have separate payment channels and greater operational flexibility, continue importing Russian oil under long-term deals.

However, the bulk of India’s Russian imports in 2023—estimated at over 1.8 million barrels per day—were driven by state buyers.

India’s oil ministry has yet to issue a formal statement, but refiners are expected to resume Russian purchases if new payment mechanisms can be arranged. As of now, future deliveries remain in question. The sources cited by Reuters did not specify a timeline for resolution.

Earlier, it was reported that Indian refiners were seeking to secure alternative crude oil supplies in response to US threats of secondary tariffs on countries importing Russian oil, particularly targeting state‑run companies.

These refiners began sourcing from the Middle East, North Sea, and Mediterranean regions to mitigate disruptions caused by geopolitical pressure.

Fundraiser For Peaceful Nights

$1,500,000 towards 10 Ukrainian AI-Controlled Turrets.

Donate