State-Owned Oil Refiners in India Pause Russian Crude Oil Imports

India’s state-owned oil refiners have made the decision to halt purchases of Russian crude oil indefinitely, amid rapidly escalating trade tensions with the US.

Just after Donald Trump proclaimed a new 25% tariff on Indian imports— a doubling down on a 25% increase one week prior, that adds to a total increase of 50%—India’s refiners have paused purchases of Russian crude oil from the spot market, including refiners such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, awaiting direction from the government.

Industry sources cannot be certain that any pause would also extend to pharma shipments as any broad-based disruption in India-US trade relations - particularly due to trade or energy policies - tend to have downstream ripple effects across major exports such as pharmaceuticals.

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Meanwhile, authorities in India are examining trade concessions that could de-escalate the tensions being observed, particularly in sectors such as agriculture or dairy.

One option currently under consideration is whether disallowing imports of genetically modified corn for controlled imports, only for industrial use, might be possible.

Overall, while India does not intend retaliatory action, they would like to pursue diplomatic initiatives to protect its international trading rights and freedom of action. For now, however, Russian crude oil purchases are suspended until negotiations being held week on week become clearer.