India continues to buy Russian oil despite Trump’s additional 25% penalty: Sources

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India continues to buy Russian oil currently despite the US government announcing 25 percent additional tariffs on New Delhi for energy ties with Moscow, three officials in the know told Moneycontrol.

“There is no change in our commercial policy. Meanwhile, we have also not received any (Indian) government directive, so we have not stopped buying Russian oil. There is no restrictions or sanctions on Russian oil. The tariff (announced by Trump) is different (from sanctions),” an oil refinery executive said.

US President Donald Trump on August 6 signed an executive order imposing additional duty of 25 percent on India, doubling tariffs to 50 percent, in an attempt to target New Delhi for purchasing Russian crude oil. India now faces one of the highest tariff burdens in the world, on par with BRICS partner Brazil, which has also been targeted with a 50% tariff.

The Indian government, however, has maintained that it would prioritise national interest and safeguard the country’s economic security. Prime Minister Narendra Modi on August 7 said the country "won't compromise on farmers' interests and is ready to pay heavy price" hours after the US government imposed additional tariff on New Delhi.

To be sure, Russia is currently India’s top crude oil supplier with New Delhi importing around 35 percent of its total oil requirements from Moscow.

Indian oil refiners ramped up oil supplies from Moscow after the Russia-Ukraine war broke out in 2022. Domestic oil companies procure Russian crude at discounted prices, in turn improving companies’ margins. Prior to the Russia-Ukraine war, India only used to source 0.2 percent of its total crude requirements from Moscow.

With India’s high reliance on Russian oil, reducing imports from the Moscow would not be without difficulty for oil refiners and cannot happen instantly, according to experts.

“Reducing Russian crude isn’t as simple as flipping a switch—it’s tied to long-term contracts, operational setups, and market adaptability that can’t be undone overnight,” said Sumit Ritolia, lead research analyst, refining & modeling at Kpler.

India’s state-run oil marketing companies (OMCs) include Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). The two major private refiners are Reliance Industries Limited (RIL) and Nayara Energy.