New Delhi, July 30, 2025 — India’s state-owned oil refiners have suspended new purchases of Russian crude oil amid narrowing price discounts and intensifying pressure from the United States. The move comes just days after former U.S. President Donald Trump warned that countries continuing to import Russian oil could face tariffs of up to 100% if Russia refuses to agree to a ceasefire in Ukraine.
India, which has relied on Russia for approximately 35–40% of its crude oil imports, is now grappling with significant economic and diplomatic challenges. The American ultimatum, coupled with reduced price advantages, has triggered a swift reorientation in New Delhi’s oil procurement strategy.
Major Indian refiners — including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL) — have ceased placing new orders for Russian oil. Instead, they are now seeking alternative supply sources in the Middle East and West Africa, according to senior industry officials.
The U.S. administration has made it clear that any importer maintaining oil trade with Russia may face punitive tariffs, while Trump has already imposed a 25% standard tariff on Indian imports as a pressure tactic to realign global energy markets.
This development marks a significant shift in India’s energy policy and underscores the growing impact of geopolitical tensions on global trade routes and alliances.
