Indian state-owned oil refineries, including Indian Oil Corp. and Bharat Petroleum Corp., have resumed purchases of Russian Urals oil after a brief hiatus, despite increased trade tariffs and criticism from US officials, including Donald Trump and his advisors. This is reported by Bloomberg, writes UNN.
Details
According to traders unauthorized to speak publicly, state-owned oil companies have purchased Urals oil batches scheduled for shipment in September and October. Earlier this month, purchases were temporarily suspended after US President Donald Trump drew attention to India's role in Russian oil trade and threatened economic sanctions.
In late July, New Delhi instructed refining companies to develop plans to abandon OPEC+ supplies in case of supply problems. American officials, including trade advisor Peter Navarro and Treasury Secretary Scott Bessent, stated that the increase in Russian oil imports primarily benefits wealthy Indian families and called on the US to raise tariffs on Indian goods. Trump threatened to increase duties to 50%, half of which were specifically related to the purchase of Moscow oil.
The Indian government emphasized that crude oil imports are determined by market factors and promises to protect national interests. The deterioration of relations with the US has strengthened New Delhi's economic and political ties with Moscow and Beijing. Prime Minister Narendra Modi recently called Putin's dictatorate a "friend" and plans to visit China as part of his first trip to the country in seven years.
Traders also note that the discount on Urals oil has increased to $2.50 per barrel compared to Brent Dated, which has become an additional incentive for resuming purchases. Spokespersons for Indian Oil Corp. and BPCL have not yet commented on the recent agreements.
Recall
Russia expects India to remain a stable oil customer, offering discounts of about 5% off the market price. The US is increasing pressure on India over purchases of Russian oil, imposing duties and accusing it of supporting "Putin's war."
US Treasury Secretary Scott Bessent accused India of profiting from purchases of Russian oil during the war in Ukraine. He noted that the share of Russian oil in India's imports increased from less than 1% to 42%.