Indian oil companies, despite Trump's threats; India buys Russian oil again

 

 

Despite US President Donald Trump's threats, Indian Oil and Bharat Petroleum have resumed imports of Russian oil. Officials from both companies confirmed that they have purchased crude oil for September and October. Indian oil companies had stopped importing oil from Russia in July due to the decline in Russian oil prices and pressure from the US. Trump had threatened to impose an additional 25% duty on Indian products if they continued to buy oil from Russia. He had also warned that this would be effective from August 27.

However, the price of Russian oil, Urals crude, fell by about $3 per barrel, which prompted Indian companies to resume imports. The officials said that this price drop has made Russian oil more attractive to Indian refineries. Besides Urals, IOC has also bought Russian crude grades like Varandey and Siberian Light.

After Indian companies stopped buying Russian oil, Russia's main customer, China, had increased imports significantly. India's resumption of Russian oil imports could reduce supplies to China. Public sector oil companies usually do not comment officially on their crude imports. Last Monday, the IOC chairman said that they would continue to buy Russian oil based on economic benefits. Meanwhile, there are reports that Chinese refineries have already purchased Russian oil for October and November.