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India Resumes Russian Oil Imports Despite US Pressure and Higher Tariffs

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India Resumes Russian Oil Imports Despite US Pressure and Higher Tariffs
An oil refinery operated by Bharat Petroleum Corp. Ltd., in Mumbai, India, on October 3, 2023. (Source: Getty Images)

Despite signaling readiness to reduce reliance on Moscow, India’s state-run refiners have resumed purchases of Russian oil after a brief pause—pressing ahead despite higher tariffs and mounting criticism from the Trump administration.

According to traders cited by Bloomberg on August 20, Indian Oil Corp. and Bharat Petroleum Corp. secured several cargoes of Russian Urals crude in recent days, with shipments scheduled for September and October.

The move comes after state refiners temporarily halted purchases earlier this month, following US President Donald Trump’s warnings about India’s role in financing Moscow through oil trade. According to Bloomberg, in late July, New Delhi even instructed processors to prepare contingency plans in case Russian flows were cut off.

White House Trade Adviser Peter Navarro argued in a Financial Times column this week that the surge in Russian imports was driven by “profiteering by India’s Big Oil lobby” rather than domestic needs.

“India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro added.

Meanwhile, Trump has threatened to increase levies on all Indian imports to the United States to 50% with half of the hike directly linked to Russian oil purchases. India’s government has maintained that its crude import decisions are based on market conditions and stressed it will take all necessary measures to safeguard national interests.

Earlier, it was reported that Russian crude is being sold to Indian buyers at steep discounts as EU sanctions and the threat of US penalties weigh on demand. The price of Urals, Russia’s benchmark grade, has fallen to more than $5 per barrel below Dated Brent—after trading near parity just two weeks ago.

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