India’s state-run refiners have halted Russian crude oil purchases in the past week, turning instead to Middle Eastern and West African suppliers as shrinking discounts and U.S. pressure weigh on Moscow’s exports.
Industry sources confirmed that Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), and Mangalore Refinery Petrochemicals Ltd (MRPL) did not place orders for Russian crude in recent days.
The decision comes amid narrowing discounts on Russian supplies and heightened geopolitical pressure following U.S. President Donald Trump’s warning of imposing 100 percent tariffs on countries that continue buying Russian oil without a Ukraine peace deal.
“Indian refiners have moved to spot markets, sourcing alternative grades such as Abu Dhabi’s Murban crude and West African blends,” one source told Naijaonpoint.
Market Impact
India, the world’s third-largest oil importer, is the largest buyer of seaborne Russian crude. State refiners control more than 60 percent of the country’s total refining capacity of 5.2 million barrels per day. Their withdrawal from Russian supply contracts signals a major shift in purchasing patterns that could tighten Russia’s export options.
Private refiners Reliance Industries and Nayara Energy remain the biggest Russian oil buyers in India. However, with state-run firms reducing orders, Russia risks losing significant market share in the country’s highly competitive refining sector.
Geopolitical Pressure
On July 14, President Trump threatened punitive tariffs on nations that continue purchasing Russian oil. Analysts believe the warning has prompted India’s state-owned refiners to re-evaluate their exposure to Russian crude, especially as Western sanctions continue to complicate transactions and logistics.
“The risk profile for Russian barrels has increased, and with discounts narrowing, the incentive for state refiners to maintain these purchases has diminished,” another source explained.
Outlook
India’s pivot to Middle Eastern and West African suppliers could reshape regional trade flows in the coming months. While Russian oil remains attractive for private refiners with greater flexibility, the exit of state-run buyers underscores growing uncertainty for Moscow’s long-term position in Asia.
With global oil markets closely monitoring the development, the shift may influence price differentials across Asia and accelerate competition for premium Middle Eastern grades.