Indian State Refiners Restart Russian Oil Imports Despite Tariff Threats: Report

India’s State Refiners Resume Russian Oil Purchases After Discounts Widen.

India’s state-run refiners Indian Oil Corp (IOC.NS) and Bharat Petroleum (BPCL.NS) have resumed buying Russian crude for September and October delivery after wider discounts made imports more attractive, two company officials said on Wednesday.

The return of Indian refiners to Russian oil could trim supplies available to China, which had ramped up purchases in their absence.

Purchases were halted in July after discounts narrowed and amid criticism from Washington. U.S. President Donald Trump also warned of a 25% levy on Indian goods, effective August 27, to penalize New Delhi for its continued Russian oil imports.

Currently, discounts on Russia’s flagship Urals crude have widened to around $3 per barrel, reviving interest among Indian buyers. IOC has also secured other Russian grades, including Varandey and Siberian Light, according to the officials.

Indian refiners typically avoid commenting on crude import strategies, but IOC told analysts on Monday it would continue Russian oil purchases based on economic viability. Meanwhile, Chinese refineries have booked 15 cargoes of Russian oil for October and November delivery, analysts and traders said.