Indian companies stop placing orders for Russian oil: Five major companies, including Reliance, will stop buying Russian oil from December; Trump will reduce tariffs on India.
India has significantly reduced its crude oil purchases from Russia for December delivery. According to a Bloomberg report, the country’s five major refiners have not placed any new orders for December.
This decision comes amid US sanctions and India-US trade talks. In August, US President Donald Trump imposed a 50% tariff on India for purchasing Russian oil.
He subsequently banned all transactions with Russia’s state-owned oil companies, Rosneft and Lukoil. These sanctions are effective from November 21.
Reliance, BPCL, HPCL did not place oil purchase orders.
Reliance Industries, Bharat Petroleum, Hindustan Petroleum, Mangalore Refinery, and HPCL-Mittal Energy did not place any new orders with Russia for December. These companies have accounted for two-thirds of India’s Russian imports so far this year.
Indian Oil Corporation (IOC) and Nayara Energy are the only companies purchasing Russian oil for December. IOC is purchasing from non-restricted suppliers, while Nayara, in which Russia’s Rosneft holds a 49% stake, is entirely dependent on Russian supplies.
India is now looking for alternative suppliers
Russia has accounted for approximately 36% of India’s oil supply this year, but refineries are now looking for alternatives. IOC has bid to purchase 24 million barrels of oil from the US and other regions for January-March. Hindustan Petroleum has purchased 4 million barrels of oil from the US and West Asia for January.
Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) have met with Indian officials and assured continued supplies.
Trump to reduce tariffs on India
US President Donald Trump said on Monday that India and the United States are close to finalizing a new trade agreement. He said the US will gradually reduce tariffs on India.
Regarding the question of reducing tariffs on India, Trump said that high tariffs were imposed on India because of its purchase of Russian oil, but now India has significantly reduced its purchases of Russian oil. He said, “Yes, we will reduce tariffs.”
