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Russian oil A Day after reports suggested that Indian state-run oil companies had stopped buying crude from Russia, government sources rejected the claims, stating that India’s energy trade decisions are guided by market dynamics and national interest. The clarification followed US President Donald Trump’s praise of the alleged halt, which he called a “good step”, though he admitted he was unsure of its accuracy.
In recent weeks, amid escalating geopolitical tensions and mounting pressure from the United States, several reports suggested that India might cease purchasing Russian crude. But according to consistent statements from Indian government sources, that narrative is inaccurate: there has been no official mandate to stop importing Russian oil. Instead, procurement decisions continue to hinge on economic rationale and market dynamics.
Sticking to Contracts, Not Politics
Government officials have made it clear that Indian oil companies—both public and private—have not received directives to halt Russian oil imports. Discontinuation claims are often based on shifts in spot-market purchases rather than policy-driven decisions. As government sources told Reuters, while state-run refiners may have “paused” purchases due to narrowing discounts, this was not triggered by a formal directive. Russian oil remains a key supplier, contributing roughly 35% to India’s crude imports in the first half of 2025 Reuters.
Indian Oil Corporation (IOC): Economics Over Diplomacy
A.S. Sahney, Chairman of Indian Oil Corporation (IOC), reinforced this position in mid‑August. He confirmed that IOC continues to purchase Russian oil solely based on economic viability. Though the discounts have dwindled—from highs of around $40 per barrel to just $1.5—IOC has not stopped its purchases; volumes now fluctuate depending on pricing attractiveness The Economic Times.
Similarly, Hindustan Petroleum Corporation (HPCL) asserted that there is no governmental direction to either stop or continue Russian oil imports. Chairman Vikas Kaushal clarified that import decisions remain in the hands of the companies and will continue to be determined by commercial merits. He also noted that even if Russian imports ceased, there would be no “significant” impact on HPCL’s operations—reflecting adaptability in sourcing strategies The New Indian ExpressThe Indian Express.
Strategic Diversification Underway
Import patterns do show a discernible shift. State-run refiners have indeed reduced Russian crude intake in recent months. In July 2025, overall Russian oil imports dropped by approximately 24% year‑on‑year, driven largely by government-owned refiners. Meanwhile, private refiners like Reliance and Nayara are diversifying but continue sourcing Russian crude under long‑term contracts The Financial Expressepcworld.inReuters.
This adjustment is attributed not to policy shifts, but economic logic: narrowing discounts, logistic efficiency, and the need to hedge against risk. India is now increasing procurement from other regions—such as the Middle East, West Africa, and the U.S.—as and when price differentials favor those sources ReutersThe Times of IndiaThe Financial Express.
Balancing Energy Needs with Geopolitical Pressures
Internationally, these procurement decisions have not gone unnoticed. Former U.S. President Donald Trump aggressively targeted India’s energy ties with Russia, raising the threat of 25% to even 50% tariffs on Indian goods. Washington also signaled potential penalties for countries continuing to buy Russian oil and military goods The Washington PostNew York PostFinancial Times.
Despite this, India has asserted its policymaking autonomy. Officials argue that Russian oil is neither sanctioned by the U.S. nor the EU, and that India’s purchases remain within global norms—guided by price, supply stability, and national interest The GuardianOutlook IndiaReutersFinancial Times.
Why It Matters
Energy Security: Russia remains a major supplier, and rapid disengagement could drive up costs, tighten fuel supplies, and impact domestic inflation and subsidies.
Strategic Autonomy: India’s continued imports signal its intent to chart independent foreign and energy policies—even when global powers exert pressure.
Economic Rationality: Indian refiners are making decisions grounded in market logic—seeking the most competitive crude sources regardless of geopolitics.
The Road Ahead
India’s approach is nuanced. It’s neither blindly aligned with any global bloc nor easily swayed. Instead, it responds to economic signals—lower discounts trigger a temporary slowdown; better price points prompt re-engagement. At the same time, the country is diversifying its crude sources to insulate itself from volatility.
Though the U.S. threats loom large, for now, India’s energy narrative remains clear: There has been no directive to stop Russian oil imports—decisions continue to be driven by availability, pricing, and strategic stability.