India’s main oil refineries — the world’s largest importers of Russian crude — might reduce purchases following the European Union’s not too long ago adopted sanctions package deal towards Russia. This was reported by Bloomberg, citing knowledgeable market sources and senior refinery executives who requested anonymity.
According to the report, Indian refineries are exploring different oil provide sources. However, a whole abandonment of Russian oil stays unlikely at this stage, as no main shift has but occurred, a Bloomberg supply clarified.
It is price noting that the EU’s new sanctions have dealt a big blow to Russia’s oil trade. One of the measures targets a big Indian refinery with Russian involvement. Additionally, the value cap on Russian oil has been lowered, and the EU has banned the import of petroleum merchandise produced from Russian crude.
On Tuesday, July 29, India’s ambassador to the United Kingdom, Vikram Doraiswami, informed Times Radio that EU international locations proceed to buy uncommon earth metals from Russia whereas pressuring India to restrict its power imports from Moscow. The diplomat acknowledged that India imports over 80% of its power wants and has no intention of halting oil purchases from Russia regardless of EU strain.
Source: Reuters
“India is the world’s third-largest power client. We import greater than 80% of our power. What would you want us to do? Shut down our economic system?” the ambassador retorted sharply to the interviewer.
According to Gazeta.Ru, within the first half of 2025, Russia remained India’s prime oil provider, accounting for 35% of whole imports. The major driver of those purchases has been important reductions — as much as $15–20 per barrel — supplied in response to Western sanctions.
Experts level out that India turned Russia’s important oil buyer after Western sanctions have been imposed in 2022 following the invasion of Ukraine. They emphasize that India’s present financial development is basically underpinned by inexpensive Russian power, and changing this advantageous provide will likely be extraordinarily tough — a critical blow to India’s economic system.
Nevertheless, regardless of daring public statements, India has begun looking for options. According to Bloomberg, the state-owned Mangalore Refinery & Petrochemicals Ltd. (MRPL) bought roughly 1.3 million barrels of Azerbaijani oil, to be delivered to the New Mangalore Port between late August and September. Sources famous that the deal was finalized forward of the everyday schedule and that Azerbaijani crude will not be generally utilized by Indian refineries.
Hindustan Petroleum Corp. (HPCL) acquired West African crude grades, together with Nigeria’s Bonny Light, Egina, and Qua Iboe. Meanwhile, Reliance Industries Ltd. bought the UAE’s flagship Murban crude — a premium oil mix that usually prices greater than the heavier blends exported from Russia and the Middle East, Bloomberg stories.
Industry insiders reassured that such diversification is normal for a big economic system like India’s. Nonetheless, the accelerated tempo of the seek for options has not gone unnoticed.
Meanwhile, oil cooperation between India and Azerbaijan was already initiated six months in the past. In February, SOCAR signed a memorandum of cooperation with Indian corporations Mangalore Refinery and Petrochemicals Limited (MRPL) and Oil and Natural Gas Corporation Limited (ONGC).
SOCAR, MRPL and ONGC Sign Strategic MoU at India Energy Week 2025
According to ONGC, on February 12, throughout India Energy Week, SOCAR, MRPL, and ONGC signed a non-binding Memorandum of Understanding (MoU) to discover strategic alternatives within the power sector. The MoU contains cooperation in key areas reminiscent of crude oil and LNG provide, the sale and supply of petroleum merchandise, the exploration of buying and selling alternatives, and capability constructing by means of data sharing.
ONGC famous that this strategic partnership would strengthen its presence in Azerbaijan’s oil and gasoline sector, significantly within the ACG (Azeri–Chirag–Gunashli) and BTC (Baku–Tbilisi–Ceyhan) initiatives. Currently, ONGC Videsh holds a 2.92% stake in ACG and three.1% within the BTC pipeline. MRPL, a refinery positioned in Mangalore, is a subsidiary of ONGC.
Previously, India’s Oil Minister Hardeep Singh Puri acknowledged at an trade discussion board in New York that he was “not apprehensive in any respect.” “If one thing occurs, we’ll take care of it,” he was quoted by Reuters. According to the minister, India already cooperates with 40 suppliers, together with Guyana, Brazil, and Canada — international locations able to compensating for misplaced volumes in case of U.S. sanctions towards consumers of Russian oil.
It is price recalling that Donald Trump has threatened such international locations with 100% tariffs.
Such tariffs are unlikely to take a seat effectively with New Delhi. Therefore, the seek for new suppliers will proceed, as India might in the end hesitate to stick with Russian oil imports. The present U.S. president doesn’t take such issues evenly.
By Tural Heybatov
