Indian Oil Corporation (IOC) chairman A.S. Sahney has confirmed that India continues to import Russian crude oil despite US President Donald Trump’s recent decision to double tariffs on Indian goods to 50%. The US move, announced last week, cited New Delhi’s ongoing purchases from Russia as a key reason.

Speaking to reporters, Sahney stressed that India’s crude buying decisions are driven entirely by economic factors, not political pressure. “There is no pause,” he said. “We continue to buy if the pricing and characteristics of the crude fit our processing needs.”

Purchases Driven by Discounts
India’s imports from Russia can fluctuate month to month, largely depending on the discounts offered. In recent months, price cuts on Russian crude such as the Urals grade narrowed to as low as $1.5 per barrel, leading to reduced buying. Discounts have since widened to around $2.70, prompting refiners to increase intake again.

Before February 2022, Russian crude accounted for less than 1% of India’s imports. But following the Ukraine invasion and Western sanctions on Moscow, discounted Russian oil became available, and India quickly became its largest buyer.

No Government Directive to Change Sourcing
Sahney said there have been no instructions from the Indian government to either increase or reduce purchases from Russia or to buy more from the US. “Economic considerations dictate our actions,” he said. He also noted that there are currently no sanctions on Russian crude, and India has not violated any international restrictions.

BPCL’s finance director Vetsa Ramakrishna Gupta said Russian oil made up 34% of BPCL’s crude imports in the first quarter of this year, and the company expects to maintain a 30–35% share as long as there are no sanctions.

Trump’s latest tariff hike adds a 25% penalty on top of an existing 25% levy on Indian goods. The US president has warned that further tariffs could follow if India’s Russian oil purchases continue.

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