Indian oil refineries, among the largest buyers of Russian oil, plan to reduce their purchases in the coming weeks. This is a modest concession to Washington hawks less than a day before the increase in US tariffs, but also a signal that the country does not plan to sever relations with Moscow, Bloomberg reports, writes UNN.
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Indian state and private refiners, including the large company Reliance Industries Ltd., are expected to purchase 1.4 to 1.6 million barrels per day for shipment in October and beyond, informed sources said.
This compares to an average of 1.8 million barrels per day in the first half of the year.
The Trump administration, seeking to reduce the trade deficit with India, has increased pressure on energy trade with Russia. This includes a doubling of US tariffs, which are due to take effect on Wednesday.
Volumes could change if India reaches a trade agreement with Trump and the US eases pressure on India over financing Russia's war with Ukraine, sources said.
As the publication notes, "since the end of last month, under pressure to conclude a trade agreement and make progress in Ukraine," US President Donald Trump has criticized India for purchasing Russian oil, and especially for the sharp increase in purchases since the beginning of the war in Ukraine. According to Kasatkin Consulting, before 2022, the country purchased a minimal amount of oil, and now it accounts for 37% of Moscow's oil exports.
Since then, US administration officials have intensified public criticism against the country's energy magnates.
The US Department of Homeland Security on Monday published a draft notice on raising tariffs on imports from India to 50% from August 27.