Indian State-Owned Refineries Restart Russian Urals Oil Purchases: What It Means for Energy Markets

Indian state-owned refineries have resumed buying Russian oil, marking a significant shift in their purchasing strategy. This decision comes despite heavy criticism from U.S. officials. Recently, Indian Oil and Bharat Petroleum ordered multiple shipments of Urals oil scheduled for delivery in September and October.

Earlier this month, these refineries paused their purchases after U.S. President Donald Trump condemned India’s involvement in the Russian oil trade and warned of possible economic sanctions. However, the recent uptick in buying shows a different approach.

New Delhi has instructed its refiners to develop plans for reducing reliance on Russian oil in case supplies are cut off entirely. This proactive strategy highlights India’s intent to mitigate risks associated with geopolitical tensions.

American officials have been vocal about their discontent. White House trade adviser Peter Navarro accused India of prioritizing “the profits of big oil lobbyists” over national interests. Meanwhile, U.S. Secretary of the Treasury Scott Bessent pointed out that some of India’s wealthiest families stand to gain from buying Russian oil. He hinted at plans to increase import duties on goods from India, with Trump threatening a 50% tariff on all Indian products starting August 27, primarily targeting imports related to Russian oil.

This friction has nudged India closer to Russia and China. Prime Minister Narendra Modi recently described Russian President Vladimir Putin as a “friend” and plans to visit China for the first time in seven years. Such moves indicate a shift in alliances, potentially reshaping regional dynamics.

The increase in Russian oil purchases by India reflects a complex balancing act. While trying to satisfy domestic energy needs, the country grapples with the backlash from a crucial ally. Analysts note that India’s actions could influence global oil markets significantly. As a major consumer, India’s decisions will resonate beyond its borders.

In light of these developments, it’s worth noting that a recent survey by the Center for Global Energy Policy revealed that 67% of energy economists believe countries must diversify their energy sources to avoid geopolitical risks. India’s current strategy around Russian oil raises questions about long-term energy security and economic stability.

For more insights, you can check out the full article on Bloomberg [here](https://www.bloomberg.com/news/articles/2025-08-20/india-s-refiners-ramp-up-russian-oil-buying-despite-us-criticism).

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