• Source:JND
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India has refuted recent allegations of the suspension of Russian crude oil imports, upholding that its procurement policy remains driven by national interest and stability of the international energy market. The clarification comes in response to a comment made by United States President Donald Trump, who suggested that India may have stopped purchasing oil from Russia, a move he described as “a good step” if confirmed. But sources cited by ANI strongly denied media reports of India halting purchase of Russian Oil, and after US President's latest comment echoing the claim in the media report.

As per senior government sources cited by ANI, Indian oil refineries continue to purchase crude oil from Russian producers. Providing context for India's decision to continue sourcing oil from Russian suppliers, sources said that Russia is the world's second-largest crude oil producer with an output of around 9.5 mb/d (nearly 10 per cent of global demand), is also the second-largest exporter, shipping about 4.5 mb/d of crude and 2.3 mb/d of refined products. Fears of Russian oil being pushed out of the market and the consequent dislocation of traditional trade flows drove dated Brent crude prices to soar to USD 137 per barrel in March 2022. "In this challenging environment, India, as the world's third-largest energy consumer with 85 per cent crude oil import dependence, strategically adapted its sourcing to secure affordable energy while fully adhering to international norms," added sources.

India: A Responsible Energy Consumer

India, the world’s third-largest energy consumer, 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.

Earlier on July 31st, Reuters reported, citing its sources, that Indian state-owned refineries suspended Russian oil purchases last week amid threats of tariffs from US President Donald Trump and narrowing price discounts. Adding further historical context to its decision of sourcing Russian Oil, sources told ANI that "Russian oil has never been sanctioned; instead, it was subjected to a G7/EU price-cap mechanism designed to limit revenue while ensuring global supplies continued to flow. India acted as a responsible global energy actor, ensuring markets remain liquid and prices stable. India's purchases have remained fully legitimate and within the framework of international norms."

He also mentioned that the new price cap set by the European Union at USD 47.6 for Russian crude is anticipated to come into force from September 2025. Indian refiners will remain in line with such changing mechanisms as and when required, he added.

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EU Remains Top Buyer Of Russian LNG

While India's Russian oil imports are still under global scrutiny, officials noted that the European Union imported the most Russian liquefied natural gas (LNG) in the same period.

Statistics quoted by sources indicated:
• The EU purchased 51 per cent of Russian LNG exports,
• China (21 per cent) and Japan (18 per cent) were next.
• For pipeline gas, the EU had the largest share at 37 per cent, followed by China (30 per cent) and Turkey (27 per cent).

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Thus, India’s oil purchase decisions are rooted in economic rationale, not geopolitics. By continuing Russian oil imports within the price cap norms and refusing to source from sanctioned entities, India has projected itself as a responsible and pragmatic energy player in a volatile global landscape.