India’s state-owned refiners continue buying Russian oil amid U.S. tariff pressure

What happened: Indian state-owned refiners are still purchasing Russian crude, despite U.S. tariffs on such imports.

Why it matters now: New Delhi is seeking tariff relief while navigating global energy supply and geopolitical tensions.

What changes for people: The move affects fuel pricing, trade relations with the U.S., and import strategies for Indian refiners.

Who is affected: State-owned refiners, private players like Reliance, and international trade policymakers.

Indian state-owned refiners are continuing to buy Russian oil for future deliveries, even as the United States maintains sanctions and tariffs targeting such imports. Analysts say these purchases reflect a strategic effort to secure crude supplies while managing U.S. trade pressure.

U.S. sanctions and tariffs

In August 2025, the U.S. imposed a 25% “secondary” tariff on Indian goods, citing continued imports of Russian crude. Later, in November, Russian oil companies Lukoil and Rosneft were also sanctioned.

Key fact: Despite this, state-owned refiners including Bharat Petroleum, Indian Oil Corporation, and Hindustan Petroleum continue to purchase Russian crude for scheduled deliveries.

Major outcome: The purchases have not collapsed Indian demand but have led to a “redistribution of demand,” according to energy experts.

Private refiners scale back

Private companies, including Reliance Industries, have reduced exposure to Russian oil in response to sanctions and potential trade consequences, highlighting a split between private and state-owned players.

Why analysts say demand hasn’t collapsed

Experts told CNBC that India’s imports are strategically structured: while some buyers cut back, state-owned refiners maintain supply continuity. This approach balances energy security with geopolitical and trade risks.

Implications for India

Potential impact on fuel prices in domestic markets.

Increased diplomatic engagement with the U.S. over tariffs.

Strategic energy diversification and long-term planning for crude procurement.