India risks Trump’s tariffs as oil refiners may still buy Russian
Both state-run and private refiners in India are allowed to buy from their preferred sources, and crude purchases remain a commercial decision
Trump blasted India on Wednesday for continuing to purchase most of its military equipment and energy from Russia. The US leader imposed a surprise 25 per cent tariff on India and threatened an additional penalty for its close ties with Moscow. Two days later, Trump told reporters he “heard” India would no longer be buying oil from Russia, calling it “a good step.”
India has maintained its energy purchases are driven by market forces and price. Last week, refiners were told to come up with plans for buying non-Russian crude, people familiar said to reporters. The government asked state-owned processors to prepare an outline of where alternate barrels can be sourced and at what volume if Russian flows get stopped, they said. One of the people said the instruction amounted to scenario planning in case Russian crude were to become unavailable.
US media reported on Saturday that India will keep buying Russian crude despite a threat of penalties from Trump, citing two senior Indian officials it did not identify.