India explores options as Trump warns tariffs on Russian oil buyers: Report
Indian oil refiners are exploring alternatives to Russian crude following President Donald Trump’s threat to impose additional penalties on Russian oil buyers. State-owned Bharat Petroleum Corp. and Hindustan Petroleum Corp. are seeking supplies from the Middle East, North Sea, and Mediterranean, according to a Bloomberg report. The search for new sources focuses on May deliveries, with the trading cycle typically concluded by early March.
This shift comes after Trump raised the possibility of secondary tariffs on Russian oil buyers if President Vladimir Putin does not agree to a ceasefire with Ukraine. In response, oil prices surged, with West Texas Intermediate rising 3.1% on Monday, its largest increase in nearly 11 weeks.
Indian refiners are looking to reduce their reliance on Russian oil, especially after years of securing cheaper crude from Moscow. Since the start of the Ukraine war, Russia slashed oil prices to attract buyers, circumventing Western sanctions. As a result, India increased its purchase of Russian oil, with these supplies making up almost 40% of India’s total imports in 2024.
Despite recent challenges from Western sanctions, both state-owned and private Indian refiners have expressed confidence in continuing to secure Russian oil. However, with Trump’s renewed threat, they are now considering alternatives. The need for non-Russian supplies from the spot market has increased as refiners seek to mitigate the risk of further penalties.
