Indian State-Run Refiners Resume Buying Russian Oil Despite Tariff Threats: Report

Indian State Refiners Restart Russian Oil Imports as Discounts Deepen.

Indian Oil Corp (IOC.NS) and Bharat Petroleum (BPCL.NS) have resumed purchases of Russian crude for September and October delivery after discounts widened, two company officials said on Wednesday. The move marks a return after state refiners paused imports in July when price advantages narrowed and Washington criticised New Delhi’s continued Russian oil buying. U.S. President Donald Trump has also threatened a 25% levy on Indian goods from August 27 in response.

Discounts on Russia’s flagship Urals crude have widened to about $3 per barrel, making supplies attractive again for Indian refiners. Along with Urals, IOC has also bought other Russian grades such as Varandey and Siberian Light, the officials added.

The renewed Indian demand could squeeze availability for China, which had increased purchases during India’s absence. Chinese refiners have already booked 15 Russian cargoes for October and November delivery, analysts and traders said.

IOC, India’s largest refiner, told analysts this week it would continue Russian oil buying based on economics.