Sources told the journalists that companies including Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. plan to forego Russian oil until the Indian government issues “clear guidance” to do otherwise.
The decision is expected to affect purchases of Russian Urals shipments slated for October loading. The report noted that while New Delhi has not officially directed refineries to stop buying Russian oil, Prime Minister Narendra Modi’s government is reacting to the tariffs imposed by U.S. President Donald Trump.
The report added that already contracted shipments of Urals will likely proceed as planned if India does not issue further instructions. In recent days, tankers have offloaded some cargo at Indian ports, albeit with slight delays, according to the sources. At its peak, India imported more than 2 million barrels of Russian crude per day, compared with near-zero imports before the 2022 invasion of Ukraine.
On Aug. 6, Trump signed an executive order imposing an additional 25-percent tariff on imports from India in response to its continued purchase of Russian oil. The order states that the new tariffs will take effect at 12:01 a.m. 21 days after publication.
The document also said the U.S. government would monitor whether other nations continue to buy Russian oil, with the possibility of imposing further tariffs on those countries.
The Indian Foreign Ministry described the U.S. decision to impose the additional tariff as “unfair, unjustified, and unreasonable.”