Major refiners are planning to increase crude purchases even as Trump’s tariffs have kicked in
India is set to increase its imports of Russian oil in September, Reuters reported on Thursday, citing trading sources. The move comes despite US President Donald Trump imposing additional tariffs on India as punishment for buying Russian oil.
Three sources involved in oil sales to India reported that Nayara Energy and Reliance Industries plan to increase their purchases by 10-20% compared to August levels, according to Reuters. The increase would translate to an additional 150,000-300,000 barrels per day.
Russia has emerged as India’s key oil supplier since the escalation of the Ukraine conflict in February 2022 – accounting for nearly 40% of India’s crude imports. In parallel, India has become a major exporter of refined fuels to Europe since 2023.
New Delhi’s oil trade with Moscow has drawn the ire of Washington, which imposed an additional 25% tariff on Indian imports starting from August 27, on top of 25% tariffs already in place.
In July, the EU imposed sanctions on the Vadinar refinery in Gujarat, which is owned by Nayara, an Indo-Russian private company in which Rosneft holds a 49% stake.
The EU is weighing its 19th package of sanctions against Russia, which will include states it claims are helping Moscow bypass Western restrictions, Bloomberg reported on Wednesday.
US officials have repeatedly claimed that Indian oil purchases are fueling the Ukraine conflict. On Wednesday Peter Navarro, senior trade adviser to Trump, told Bloomberg TV that the conflict is effectively Indian Prime Minister Narendra Modi’s “war,” alleging that New Delhi’s discounted oil purchases from Moscow are helping Russia’s armed forces.
Trump and US Treasury Secretary Scott Bessent also recently criticized India for its trade with Russia. India has called the US tariffs “unfair, unjustified, and unreasonable,” and has pledged to safeguard its national interests.
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