• Source:JND
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India will go on importing Russian crude oil purely on economic grounds, Indian Oil Corporation (IOC) Chairman AS Sahney assured on Thursday, dismissing worries over US President Donald Trump's recent move to impose heavy tariffs on Indian exports. “There is no pause,” Sahney said. “We continue to buy purely based on economic considerations, if the pricing and characteristics of the crude make sense for us, we buy.” The IOC chief said purchase volumes vary month-to-month depending on discounts offered on Russian grades like Urals. While discounts narrowed to USD 1.5 per barrel late last month, prompting lower offtake, they have since widened to around USD 2.70.

Russian crude formed 22–23 per cent of IOC's overall processing during the April–June quarter. Russian oil was less than 1 per cent of India's imports before the Ukraine war in February 2022. But Western sanctions against Moscow provided a window of opportunity for lower-priced Russian barrels, and India became the biggest buyer. Other refiners like Bharat Petroleum Corporation Ltd (BPCL) also continued Russian imports. BPCL Finance Director Vetsa Ramakrishna Gupta stated Russian crude constituted 34 per cent of the company's first-quarter intake and will continue to be in the 30–35 per cent bracket “as long as there are no sanctions.”

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Sahney emphasised that IOC received no directive from the Indian government to cut or increase Russian oil imports under pressure from the United States. “Neither are we being told to buy more nor are we told to buy less from the U.S. or any other destination,” he said. “Economic considerations dictate our actions.”

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Tariff Move Linked To Russian Oil Trade

On August 6, President Trump signed an Executive Order, which levies an additional 25 per cent tariff on all Indian imports as of August 27, 2025, on the grounds that India continues to buy Russian oil. The action will drive overall duties on certain Indian exports to 50 per cent, affecting as much as USD 40 billion in goods. The US move was referred to by the Ministry of External Affairs (MEA) as "unfair, unjustified and unreasonable," noting that many other countries continue to purchase Russian energy. India will undertake "all necessary actions" to protect its economic interests, said MEA spokesperson Randhir Jaiswal.