Oil above politics: India to continue purchases from Russia

Indian oil refining companies have no plans to cut imports of Russian oil, despite international pressure and rising tariffs.

Bloomberg reports this, citing sources.

Supply volumes are slightly decreasing but remain stable for November and December contracts. The reason is high domestic demand for fuel.

Sources say that with the easing of pressure from the US after Donald Trump’s statements thanking Prime Minister Narendra Modi for “supporting the end of the war”, purchases may increase again. Also contributing is the sufficient supply of the Urals variety.

The Indian government has not given any official guidance on whether to increase or decrease purchases, and this may change depending on the progress of trade negotiations.

Reliance Industries remains the key player, with a long-term contract with Rosneft. Its decisions will determine the overall level of imports. If Reliance cuts volumes, the overall figures could fall.

Recall that India plans to increase imports of Russian oil by 10-20% in September, despite new US tariffs of 50% on its goods . In this way, New Delhi demonstrates its unwillingness to give up cheap Russian raw materials, which help the Kremlin finance the war against Ukraine.

As reported, Indian Finance Minister Nirmala Sitharaman confirmed that the country will continue to purchase Russian oil.

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