• Source:JND
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As trade terms between India and the United States remain delicate after the announcement of a 25 per cent tariff on Indian imports to the US, the Indian government has issued no directive to the oil refineries to stop the purchase of Russian oil, Bloomberg reported.

While announcing the tariffs, US President Donald Trump categorically mentioned India's purchase of Russian oil as the reason behind the tariffs, apart from the negative balance of trade with New Delhi.

Meanwhile, the Centre is navigating the issue diplomatically to secure its energy needs while balancing its bilateral relationship with both Russia and the US.

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Bloomberg quoted sources familiar with the matter, who spoke on the condition of anonymity, saying no official decision has been made to stop imports from Russia.

Accordingly, both private and government-owned oil refiners can continue to buy from suppliers of their choice, including the Russians. The development is crucial, especially after Trump told reporters that he heard India would stop purchasing Russian oil.

Bloomberg also reported that refiners were asked last week to draft contingency plans for procuring non-Russian oil, if a need arises. According to the report, the officials asked the state-owned refiners to explore alternate options and also estimate volumes of crude that would be required to replace the Russian import in what was called a scenario planning.

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India is the third-largest energy consumer in the world and depends on imports for nearly 85 per cent of its crude oil needs. In a volatile global market, marked by OPEC+ production cuts and shifting supply chains, India has adopted a pragmatic approach to ensure energy affordability and security. This has come under challengd after the tariff announcements.