Indian State Refiners Step Up Non-Russian Oil Purchases Under Trump Pressure
Indian state-owned refineries are increasingly sourcing crude from non-Russian suppliers, reflecting a strategic shift influenced by geopolitical pressure and increased scrutiny from international partners, including the United States. The move comes amid sustained calls from former US President Donald Trump and other Western officials urging India to reduce purchases of Russian oil in the wake of the Russia-Ukraine conflict.
India, one of the world’s largest oil importers, has historically maintained a diverse portfolio of crude oil supplies from the Middle East, Africa and Russia. However, Russian crude has gained prominence in the past two years due to discounted pricing amid Western sanctions. In 2025, Indian refiners such as Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) are reportedly cutting Russian imports in favor of crude oil from the Middle East, Africa, and the US.
Geopolitical context and Trump’s influence
Former US President Donald Trump and other international leaders have repeatedly stressed that India, as a major global buyer, should avoid purchasing Russian crude. Trump, in his recent statements during a foreign policy discussion, urged India to engage with Western energy sanctions, warning that continued purchases of Russian oil could strain relations with the United States.
While India has maintained a neutral stance in the Russia-Ukraine conflict while balancing diplomatic relations and energy needs, pressure from Washington appears to have accelerated a reassessment of oil sourcing strategies. Analysts suggest that India’s decision to diversify imports is partly economic and partly political, aiming to preserve long-term strategic partnerships with Western nations.
Shift in Crude Sourcing Patterns
According to market reports, Indian refiners have increased purchases of crude oil from Saudi Arabia, Iraq, the United Arab Emirates and the United States, partially offsetting previous Russian volumes. Saudi Arabia has emerged as a major supplier, offering long-term supply contracts and stable pricing. Similarly, alternatives to Iraqi and US crude oil are being explored to ensure a more predictable supply chain.
BPCL and HPCL have reportedly signed contracts for additional shipments of light and medium crude oil from West Africa and Latin America. These steps not only reduce potential geopolitical risks but also allow refiners to maintain the quality mix of crude oil required for domestic fuel production.
An industry insider said,
“India is considering long-term supply security. While Russian oil is cheap, global geopolitical dynamics make it prudent to diversify sources and reduce dependence.”
Impact on domestic refining and energy security
The shift towards non-Russian crude has several implications for India’s refining sector and energy security. Indian refiners will have to adjust processing configurations to handle different crude grades, which will require technical adjustments and logistics planning. Despite the challenges, analysts say the transition is manageable due to the resilience of India’s large refinery network, which includes state-of-the-art refineries in Jamnagar, Kochi and Visakhapatnam.
Energy security remains a top priority for India. By sourcing from multiple regions, India minimizes the risk of supply disruptions caused by sanctions, price volatility, or political instability in any one region. Additionally, diversified imports help stabilize domestic fuel prices, benefiting both consumers and industries.
Economic Considerations
While non-Russian crude is generally priced higher than discounted Russian oil, refiners appear willing to absorb short-term cost increases in exchange for geopolitical stability and long-term market access. Analysts project that India may incur slightly higher import costs, but the strategic advantage of aligning more closely with global energy policies outweighs immediate savings.
Petroleum economist Ravi Menon explained,
“Buying non-Russian oil may increase procurement costs by a few dollars per barrel, but the move safeguards India’s global energy relationships and shields the economy from sanction-related risks.”
U.S.-India Energy Relations
India’s adjustment in crude sourcing aligns with broader U.S.-India energy cooperation goals. The United States has been encouraging India to diversify away from Russian oil, while also offering incentives for increased imports of American crude and liquefied natural gas (LNG). This cooperation is part of a larger bilateral framework that encompasses energy security, technology sharing, and investment in renewable energy projects.
U.S. officials have welcomed India’s new crude sourcing strategy, viewing it as a step toward closer strategic alignment without forcing India to compromise its energy needs. India, in turn, continues to maintain strategic autonomy, balancing relations with Russia, the Middle East, and the U.S. simultaneously.
Market reaction and global impact
The global oil market has responded positively to India’s diversification strategy. By reducing reliance on discounted Russian crude, Indian refiners signal that key Asian buyers are adapting to Western sanctions while demanding stable long-term supplies.
International energy analysts believe India’s shift could hit Russian oil exports, potentially forcing Moscow to find alternative markets in Asia or Latin America. Meanwhile, suppliers such as Saudi Arabia, Iraq and the US have benefited from rising demand, strengthening India’s negotiating position for favorable contracts.
Conclusion
India’s decision to increase non-Russian oil purchases underlines the careful balancing act between geopolitical pressures, economic considerations and energy security needs. While Russian crude remains an economically attractive option, Indian refiners are preferring diversified sources to ensure long-term sustainability, maintain international partnerships and protect domestic refining operations.
As the global energy market remains volatile, India’s strategy reflects pragmatic diplomacy and visionary planning. By adjusting its crude oil sourcing mix, India strengthens its position as a major player in the global energy trade while dealing with the complex dynamics of international politics.
