 "'A good step': Trump welcomes reports of India halting Russian oil imports")
US President Donald Trump has praised what he described as indications that India may stop importing crude oil from Russia, calling it a “good step” if verified. His remarks come at a time of growing American pressure on India over its energy and defence ties with Moscow.
Speaking to reporters on Friday, Trump remarked, “I understand that India is no longer going to be buying oil from Russia. That’s what I heard—I don’t know if that’s right or not—but that would be a good step.” The comment follows Washington’s recent imposition of a 25 per cent tariff on Indian goods, effective August 1, with an undisclosed penalty. This is because of India's protective trade policies and continued engagement with Russia in the defence and energy sectors.
In mid-July, Trump had issued a stronger warning, threatening up to 100 per cent tariffs on nations maintaining oil trade with Russia unless Moscow agrees to a full peace settlement with Ukraine.
New Delhi clarifies stance
The Ministry of External Affairs responded to Trump’s Russia comments by reaffirming that the country's energy sourcing decisions are based on market conditions and national interest. Spokesperson Randhir Jaiswal stated there had been no government directive to halt Russian crude imports.
He added that India’s ties with Russia are longstanding and resilient, while also noting that India–US relations continue to deepen across strategic and economic dimensions.
Oil PSUs pause Russian crude buys
While there has been no official order from the government, several state-run oil companies—Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Mangalore Refinery and Petrochemicals Ltd (MRPL)—have reportedly not placed fresh orders for Russian crude in recent days, according a report by news agency Reuters.
The report suggests that the decision is more commercial than political, indicating that purchases of Russian oil from the spot market were paused around August 1.
Reasons behind the halt
The import halt comes as the economic advantage of Russian crude appears to be diminishing. Discounts on Russian oil have reportedly fallen to their lowest levels since 2022.
At the same time, recent curbs introduced by the EU have raised concerns over payment channels and the viability of financing, even when oil is traded under the price cap mechanism. Indian refiners, who typically buy Russian oil on a delivered basis, are said to be increasingly looking toward alternative grades from the Middle East and West Africa, such as Abu Dhabi’s Murban crude.
Energy security amid geopolitical troubles
India remains one of the world’s top oil importers, and Russian crude has played a critical role in keeping domestic prices stable amid global volatility. However, tighter discounts, logistical challenges, and external diplomatic pressures appear to have prompted a quiet recalibration in the sourcing strategy.