Contrary to recent comments made by former US President Donald Trump, Indian oil refiners continue to import crude oil from Russia, according to reliable government sources quoted by ANI. Trump recently remarked, “I understand that India is no longer going to be buying oil from Russia. That’s what I heard, I don’t know if that’s right or not.”
However, official sources have pushed back, clarifying that India’s energy procurement strategy is driven by economic logic and national interest, not political pressure.
India’s Oil Policy: Price, Grade, and Stability
Sources explained that Indian refiners make sourcing decisions based on a combination of price, crude quality, inventory status, logistics, and other economic factors.
They emphasized that India, the world’s third-largest energy consumer, depends on imports for over 85% of its crude oil needs. With global oil markets constantly shifting, India has continued to source affordable energy, including from Russia, while complying with all international norms.
The Global Impact: What if India Had Stopped?
Providing critical context, the sources noted that Russia is the world’s second-largest crude producer, accounting for nearly 10% of global supply. In 2022, fears of losing Russian oil pushed Brent crude prices to $137 per barrel.
“Had India not absorbed discounted Russian crude — amid OPEC production cuts totaling 5.86 mb/d — global prices would have easily surpassed the March 2022 peak,” they stated.
This move, they said, prevented a global inflation spiral and ensured oil market stability.
No Sanctions on Russian Oil, Say Sources
Sources reiterated that Russian oil has never been sanctioned by the US or EU. Instead, it has been subject to a G7/EU price-cap mechanism aimed at limiting Russia’s revenue while ensuring uninterrupted global oil supply.
“India’s purchases have remained legitimate and within the framework of global norms. We’ve complied with the US-led price cap of $60 per barrel,” the source added.
Recently, the EU recommended a reduced price cap of $47.6, set to be enforced from September 2025.
India’s Responsible Global Energy Role
Indian authorities maintain that the country has acted as a responsible global energy player by keeping oil markets liquid and prices under control, helping curb global inflation while meeting domestic demand.
The sources also pointed out that Indian Oil Marketing Companies (OMCs) have avoided crude from sanctioned countries like Iran and Venezuela, strictly adhering to international regulations.
Trump’s Tariff Threats Add Fuel to the Fire
The clarification comes shortly after Trump announced that the US would impose a 25% tariff plus penalty on goods imported from India. He cited India’s “vast majority” of military and energy purchases from Russia as justification, especially “at a time when everyone wants Russia to stop the killing in Ukraine.”
This week, reports emerged that Indian state-run refiners briefly paused Russian oil orders due to tariff threats and narrowing discounts. However, sources have firmly denied any permanent halt in Russian oil purchases, dismissing media reports and Trump’s claims as unverified.
India continues to strike a balanced, pragmatic, and lawful approach in navigating its energy needs. While maintaining its strategic autonomy, India’s continued purchase of discounted Russian oil plays a vital role in global energy market stability, even as geopolitical tensions rise.
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