Indian Oil, BPCL resume Russian oil purchases amid widened reductions: Report
India’s state-run refiners, Indian Oil Company (IOC) and Bharat Petroleum Company Ltd (BPCL), have resumed purchases of Russian oil for September and October supply after reductions widened, Reuters reported, quoting two firm officers. The return of Indian refiners to Russian crude might scale back provides obtainable for high purchaser China, which had elevated purchases throughout India’s absence.
The refiners had halted Russian oil imports in July attributable to narrower reductions and amid criticism from Washington over India’s continued commerce with Moscow. US President Donald Trump threatened to impose a further 25% levy on Indian items, efficient August 27, to penalise New Delhi for its purchases of Russian crude.
In line with officers, reductions on Russia’s flagship Urals crude have now widened to about $3 per barrel, making it enticing for Indian refiners as soon as once more. Along with Urals, IOC has bought different Russian crude grades, together with Varandey and Siberian Mild.
The US has repeatedly alleged that India’s Russian oil purchases not directly fund the battle in Ukraine. Extra lately, White Home commerce adviser Peter Navarro wrote within the Monetary Occasions that India acts as a worldwide clearinghouse for Russian oil, changing embargoed crude into high-value exports whereas offering Moscow with much-needed {dollars}.
On Monday, IOC confirmed it might proceed sourcing Russian oil, describing it as a “enterprise choice” given the corporate’s heavy reliance on discounted Russian crude.
IOC disclosed that 22% of its crude provide in fiscal 12 months 2024–25 got here from Russia. In FY26 and the present quarter, the share has risen to round 24%. The corporate additionally clarified that it has not acquired any formal route from the Indian authorities concerning its Russian oil imports. “Neither are we being advised to purchase nor advised to not purchase. We don’t make additional efforts to both improve or lower the share of Russian crude,” IOC stated.
Presently, IOC is securing Russian crude at a reduction of $1.5 per barrel in opposition to the Dubai benchmark. In line with Reuters, the corporate can also be planning a capital expenditure of ₹34,000 crore in FY26, with two main enlargement initiatives targeted on refineries in Panipat, Haryana, and Vadodara, Gujarat.
Russia reaffirms oil provide to India
Earlier within the day, a Russian embassy official in New Delhi stated Moscow would proceed supplying oil to India and confirmed that President Vladimir Putin will meet Prime Minister Narendra Modi within the capital earlier than year-end.
Roman Babushkin, chargé d’affaires on the Russian embassy, advised reporters that Russia has a “very, very particular mechanism” to make sure uninterrupted oil provide to India. He added that Indian crude imports from Russia would stay at present ranges.
In the meantime, the U.S. has confirmed its plan to impose a further 25% tariff on Indian exports starting August 28, citing New Delhi’s rising imports of Russian oil since Western sanctions have been imposed on Moscow. Nevertheless, Washington has stopped wanting imposing related tariffs on China, regardless of its comparable purchases of Russian crude.
Final month, the European Union sanctioned Russian-backed Indian refiner Nayara Power, prompting it to cut back processing whereas buying and selling companions diminished engagement with the corporate.
