India plans to reduce oil purchases from Russia due to the threat of US tariffs

Indian oil refiners may cut purchases of Russian oil as early as November, citing a new US sanctions law that allows Washington to impose high tariffs on countries that buy Russian energy.

This is reported by Bloomberg, citing sources.

India remains the world’s third-largest oil importer. In recent months, Russian crude has accounted for more than half of its imports amid high prices and supply disruptions from the Middle East. But now major Indian refiners have begun looking for alternative suppliers.

According to the newspaper’s sources, India may soon reduce the share of Russian oil to 20-30% of total imports. Thus, New Delhi may cease to be the largest seaborne buyer of Russian oil. At the same time, the Indian authorities plan to continue negotiations with the United States.

Purchases have already started to decline. According to Kpler, India could import an average of about 1.9 million barrels per day from Russia in September. That’s more than 35% of the country’s total oil imports and the lowest figure since April.

At the same time, replacing Russian oil quickly will be difficult due to large volumes of purchases and the higher cost of alternative raw materials. At the end of last week, Russian Urals oil cost India about $133 per barrel, while Middle Eastern grades Oman and Murban were a few dollars more expensive.

India’s demand for oil also continues to grow, fueled by the launch of a new refinery in Rajasthan and expansion of existing capacity, which could see total imports reach a record 5.4 million barrels per day.

A new American law allows the administration of US President Donald Trump to impose tariffs of up to 100% on goods from countries that continue to buy Russian energy within 30 days.

According to Bloomberg, New Delhi will also monitor whether Washington applies such measures to other major buyers of Russian oil, including China.

India has previously changed the volume of Russian oil purchases amid pressure from the United States. At the same time, the country’s authorities insist that when choosing suppliers, they are guided by the need to provide affordable energy to about 1.4 billion citizens.

As you know, on the night of September 17, Kyiv time, the US House of Representatives passed a bill on “hellish” sanctions against Russia . Now it must be signed by US President Donald Trump.

Subsequently, India stated that it would continue to purchase energy from various suppliers, despite the adoption of a new law on sanctions and tariffs by the US House of Representatives . New Delhi emphasized the need to ensure the country’s energy security.

At the same time, the Ukrainian President’s Commissioner for Sanctions Policy , Vladyslav Vlasyuk, named the countries that could be subject to tariffs after the US President signs the “Graham Act.” These include possible duties of up to 100% on imports from countries that purchase significant amounts of Russian energy or help circumvent sanctions.

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