Will US Tariff Hike Force India to Cut Russian Oil Imports?
Indian refiners, who are among the largest buyers of Russian crude, are planning to trim their purchases in the upcoming weeks. This is a modest concession to Washington's hawks less than a day before a hike in US tariffs, but also a signal that the country has no plans to sever ties with Moscow.
- Republic Business
- 2 min read
Indian refiners, who are among the largest buyers of Russian crude, are planning to trim their purchases in the upcoming weeks. This is a modest concession to Washington's hawks less than a day before a hike in US tariffs, but also a signal that the country has no plans to sever ties with Moscow.
Who All Will Buy This Oil?
State-run processors as well as private processors, which include conglomerates like Reliance Industries are expected to buy 1.4 million-1.6 million barrels a day for October loading and beyond, according to a Bloomberg report.
In the first half of the year this compares with an average 1.8 million barrels a day in the first half of the year.
The Trump administration has been increasing its pressure on the country's energy trade with Russia. This also includes the doubling of US tariffs, which is going to take place on Wednesday.
Additionally, the volumes may change if India reaches a trade deal with Trump and the US eases pressure on India for funding Russia's war with Ukraine, the report added.
According to the report, several spokespeople for India's oil ministry, Reliance, Nayara Energy Ltd, as well as state-run refiners like Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp didn't immediately respond to emails seeking comment.
The United States President Donald Trump who has been under pressure since last month has also singled out India for criticism over purchases of Russian crude, and particularly the dramatic increase since the start of the war in Ukraine.
As compared to its minimal purchases before 2022, the country now accounts for 37% of Moscow's oil exports, as per Kasatkin Consulting.
Additionally, US administration officials have also dialled up the volume with their own public criticism, homing in on the country's energy tycoons.
Further, the US Department of Homeland Security issued a draft notice on Monday to double tariffs on Indian imports to 50% on August 27, 2025.
Published By : Sagarika Chakraborty
Published On: 26 August 2025 at 18:30 IST