India scales back Russian crude imports amid US tariff pressure
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India is modestly reducing Russian crude imports to ease US tariff pressure while safeguarding its strategic energy partnership with Moscow.
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Steam emits from a crude oil refinery in Kochi, Kerala state, India, Aug. 26, 2022. (AP Photo/R S Iyer, File)
Bloomberg reported on Tuesday that India's refiners are preparing to scale back purchases of Russian crude, a limited adjustment aimed at easing US pressure while keeping intact the country's energy partnership with Moscow.
Both state-owned and private processors, including Reliance Industries Ltd., are expected to reduce purchases to between 1.4 million and 1.6 million barrels per day beginning with October shipments, down from an average of 1.8 million barrels daily in the first half of the year, according to people familiar with the matter.
The Trump administration has directly tied the issue to Washington's trade deficit with India and announced that tariffs on Indian imports will double to 50% starting Wednesday. The move comes alongside harsher US rhetoric that revenues from India's Russian crude purchases fuel Moscow's war effort in Ukraine.
Tariffs, oil, sovereignty
This is part of a broader US strategy to curb Russia's oil income by leaning on its largest buyers. American officials have in recent weeks intensified criticism of Indian refiners, arguing that discounted Russian barrels undermine the G7's price cap and allow Moscow to maintain wartime revenues. The Department of Homeland Security has already issued a draft notice on Monday confirming the tariff increase.
Indian refiners have begun to show signs of tactical flexibility. Some state-run firms briefly paused fresh Russian purchases in late July as US sanctions threatened tankers and narrowed discounts, while private players tested alternative grades such as Abu Dhabi's Murban. Still, New Delhi has defended its energy decisions as a matter of sovereignty and commercial necessity, signaling that the country does not intend to cut ties with Moscow.
Read more: India refuses to yield on Russian oil amid US-EU sanctions: Analysis
Energy balancing
Since late July, US President Donald Trump has sharpened his criticism, pointing out India's dramatic pivot to Russian energy, rising from negligible imports before 2022 to now accounting for 37% of Moscow's oil exports, according to Kasatkin Consulting.
At the same time, officials suggested that volumes could rebound if New Delhi secures a trade agreement with Washington and the US tempers its pressure.
For now, India appears to be taking a pragmatic approach: reducing volumes enough to acknowledge US demands while preserving a relationship with Russia that has become a cornerstone of its energy security.
