- Category
- Latest news
Sanctions Work? India Turns to US, Canada, and UAE as Russian Crude Faces Growing Risk
- Authors
![Photo of Dariia Mykhailenko]( "Photo of Dariia Mykhailenko")
India's largest state-run refiner, Indian Oil Corp (IOC), has purchased 7 million barrels of crude oil from the United States, Canada, and the Middle East for September delivery, signaling a strategic shift in sourcing away from Russia, Reuters reported on August 4, citing several trade sources.
According to Reuters, the purchase includes 4.5 million barrels of US West Texas Intermediate (WTI) Midland crude, 500,000 barrels of Canada’s Western Canadian Select (WCS), and 2 million barrels of Das oil from Abu Dhabi.
The move comes as discounts on Russian crude narrow and the arbitrage window for US oil exports to Asia reopens. Two industry sources said the higher-than-usual volumes are partly intended to replace Russian barrels, which Indian refiners have largely avoided in recent tenders.
The tender, which closed on August 3, saw US suppliers P66 and Equinor each selling 1 million barrels of WTI Midland to IOC, with Mercuria contributing another 2 million barrels. Commodity trader Vitol will deliver 1 million barrels of both WTI Midland and WCS.
The shift in sourcing coincides with growing criticism from the United States over India's energy ties with Moscow. In a sharp escalation, Stephen Miller, senior advisor to former US President Donald Trump, accused India of indirectly financing Russia’s war effort by continuing to buy Russian crude, The Daily Guardian reported on August 4.
“What he [Trump] said very clearly is that it is not acceptable for India to continue financing this war by purchasing oil from Russia,” Miller stated on Fox News, according to The Daily Guardian. He further claimed, “People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That’s an astonishing fact.”
Recently, the Trump administration imposed a 25% tariff on Indian goods, citing ongoing defense and energy cooperation with Russia. Trump has also threatened to raise tariffs to 100% on imports from countries that continue purchasing Russian oil, unless Moscow agrees to a major peace settlement.
Despite mounting Western pressure, Indian officials maintain that national energy security remains the top priority. Discounted Russian crude, they argue, is vital for maintaining affordable fuel prices for India’s 1.4 billion people.
Earlier, India’s state-run refiners temporarily halted spot purchases of Russian crude oil due to recent US sanctions tightening, which has disrupted established payment channels.
