A number of large oil refineries in India have temporarily suspended new contracts for the purchase of Russian oil following US sanctions imposed on Rosneft and Lukoil. Reuters reported this, citing its sources.
According to reports, India's largest energy companies are currently awaiting official explanations and clear legal guidelines. They are consulting with the government and the financial system on whether it is legal to continue contracts with suppliers.
At the same time, the management of the state-owned Indian Oil company stated that these restrictions do not cover all types of Russian oil and will not stop purchases.
"Russian oil itself is not under sanctions. Only some companies and ships were subject to restrictions. "If we are offered deliveries through an unprohibited company, we will continue to purchase," said Indian Oil's financial director, Anuj Jain.
At the same time, many oil companies in India, including Indian Oil, are currently meeting their needs through spot markets - that is, contracts with quick delivery at current prices. One of the Reuters interlocutors noted that "we must make sure that suppliers are not subject to sanctions, otherwise banks will not make payments."
India is currently one of the largest buyers of Russian oil, along with China. According to official data, more than 40% of Russia's total export volume is directed specifically to the Indian market. After the start of the war in Ukraine, the country sharply increased its oil purchases from Russia.
However, the US government is dissatisfied with this process. The Donald Trump administration has been pressuring India for several months, demanding a halt to Russian oil purchases. In August, Trump imposed an additional 25% tariff on India for purchasing Russian energy resources.
After this, he repeatedly stated that Indian Prime Minister Narendra Modi had promised to reduce purchases, but this information was never officially confirmed by the Indian government.
On October 20, Trump made another harsh statement - he stated that if India does not stop buying Russian oil, he will maintain "giant tariffs" on Indian goods exported to the US.
According to experts, this situation could affect not only the Indian energy market, but also the balance of global oil trade. If India genuinely joins the sanctions, it will be forced to search for new routes to sell Russian oil - which will exacerbate not only economic but also political tensions.
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