Indian state-owned refineries halt Russian oil purchases - Reuters

India's state-owned refineries suspended purchases of Russian oil last week in response to US President Donald Trump's stern warning. This was reported by Reuters, citing industry sources familiar with the procurement plans.

According to the agency's interlocutors, four Indian refineries, which previously regularly bought Russian oil, have cancelled contracts with Moscow and entered the spot market. In order to compensate for the supplies, the refineries started buying other grades of oil - primarily from the Middle East (for example, Murban from Abu Dhabi), as well as from West Africa.

The reason for the refusal was not only political factors, but also economic. Discounts on Russian oil, which previously made it particularly attractive, have fallen sharply - to the lowest level since 2022, when the West first imposed large-scale sanctions against Russia. This is due to a decline in Russian exports and stable demand from other consumers.

Through the first half of 2025, private Indian refineries bought about 60 per cent of Russia's total crude supplies, averaging 1.8 million bpd. The remainder came from state-owned refineries, which control more than 60 per cent of the country's total refining capacity (5.2 million bpd).

Previously, India was considered the largest buyer of Russian oil delivered by sea. These shipments have been an important source of revenue for Russia as it continues its full-scale war against Ukraine.

on July 14, Donald Trump issued a warning that if Moscow does not conclude a peace deal with Ukraine, the US will impose 100 per cent duties on countries that buy Russian oil. It was this statement, according to Reuters sources, that became a decisive factor in revising the purchasing policy of India's state-owned refineries.