India’s state-run refiners, Indian Oil Corporation and Bharat Petroleum, have resumed purchases of Russian oil for September and October deliveries after stepping back in July, a move that could reduce the share of supplies available to China. The decision to return to Russian crude comes after discounts on the country’s flagship Urals crude widened to about three dollars per barrel, making it once again attractive for Indian refiners. Alongside Urals, Indian Oil has also secured other Russian grades, including Varandey and Siberian Light, signaling a broader return to sourcing from Moscow.
The pause in purchases during July followed criticism from Washington over New Delhi’s continued imports of Russian crude and came as US President Donald Trump threatened to impose an additional twenty-five percent levy on Indian goods starting August 27th. With wider discounts now in play, Indian refiners have opted to prioritize economics over political concerns, underlining their reliance on cost-effective energy imports.
This shift comes as Chinese refiners had taken advantage of India’s temporary absence by ramping up their acquisitions, reportedly securing fifteen cargoes of Russian oil for October and November delivery. The re-entry of Indian state refiners into the Russian oil market is likely to squeeze China’s access to discounted barrels, heightening competition between Asia’s two largest importers. At the same time, Indian officials maintain that future purchases will continue to depend on economic feasibility, reinforcing the balancing act New Delhi faces between geopolitical pressures and domestic energy needs.
