Indian Oil Firms Look Beyond Russia Amid Sanctions Threats

Indian oil companies are exploring options beyond Russia to buy crude oil. This comes after a warning from former US President Donald Trump about possible penalties on buyers of Russian oil. According to a Bloomberg report, Bharat Petroleum and Hindustan Petroleum, both state-owned companies, are looking for additional oil supplies from the Middle East, North Sea, and Mediterranean.

The search is for oil deliveries in May, with the buying process ending in early March. This decision follows Trump’s comments on potentially imposing extra tariffs on Russian oil if Russia’s President Vladimir Putin does not agree to a ceasefire in Ukraine. Trump’s statements caused oil prices to rise, with West Texas Intermediate increasing by 3.1%, marking its best day in nearly 11 weeks.

As a result, Indian refiners are seeking oil from other countries to reduce their dependence on Russian oil. India relied heavily on Russian oil, especially after the ongoing war in Ukraine led Russia to offer lower prices to attract buyers amid Western sanctions. Last month, Indian refineries were confident that they could still obtain all the Russian crude they needed after a brief pause caused by tougher US sanctions.

In 2024, shipments from Russia accounted for almost 40% of India’s oil imports, with most of that coming from western ports.