Indian refiners prepare to cut Russian oil imports: Report

Some Indian refiners are preparing to reduce imports of Russian crude, with expectations of a gradual phase-down, Reuters reported on Thursday. The development comes as the United States steps up pressure on New Delhi to stop buying Russian oil to help end the war in Ukraine. Indian refiners, however, said they have not been officially instructed by the government to stop buying Russian oil, the report said.  

US President Donald Trump on Wednesday claimed Prime Minister Narendra Modi had assured him that India would stop purchasing oil from Russia. "He (Modi) is a friend of mine, we have a great relationship... we were not happy with him buying oil from Russia because that let Russia continue on with this ridiculous war where they've lost a million and a half people," Trump said during a White House event. "I was not happy that India was buying oil, and (Modi) assured me today that they will not be buying oil from Russia. That’s a big step. Now we've got to get China to do the same thing." 

Trump claimed the phase-out was already underway. "He (Modi) has assured me there will be no oil purchased from Russia. I don't know, maybe that's a breaking story. Can I say that?...He's not buying his oil from Russia. It (has) started. He can't do it immediately; it's a little bit of a process, but the process is going to be over with soon," he said, adding that India could resume energy trade with Moscow once the war ends. "If India doesn't buy oil, it makes it much easier, and they're not going to buy... And they'll go back to Russia after the war is over."

India's foreign ministry did not directly refer to Trump's comments but reiterated that the country's energy policy remained guided by its own priorities. "It has been our consistent priority to safeguard the interests of the Indian consumer in a volatile energy scenario. Our import policies are guided entirely by this objective," the ministry said in a statement on Thursday.

India and China remain the two biggest buyers of Russian seaborne crude exports, capitalising on discounted prices after European sanctions on Moscow following the February 2022 invasion of Ukraine.

In the first six months of the current fiscal year (April to September), India imported about 1.75 million barrels per day of Russian crude — around 36% of its total oil imports, down from 40% in the same period last year.

Imports from the United States rose 6.8% year-on-year to 213,000 barrels per day, accounting for 4.3% of total imports. The share of Middle Eastern oil increased to 45% from 42% over the same period, according to government data.