‘Country first, commerce later’: Indian refiners unlikely to stop Russia crude oil trade under US pressure; ‘message from government is…’
India’s crude oil trade with Russia has emerged as a prickly point in trade deal talks with the US, with the Donald Trump administration imposing 25% additional tariffs effective today. But, Indian refinery executives have indicated that procurement of Russian crude is unlikely to stop with the government taking a strong stand against US pressure.Indian refineries maintain their Russian oil imports as India takes a firm position in US trade discussions, with refinery officials seeing minimal likelihood of the government halting crude trade despite US tariffs.
Clear message from government: ‘Country first, commerce later’
Refinery executives told ET that there are no official instructions to stop Russian oil procurement. Although September-loading cargo orders decreased compared to yearly averages due to tariff uncertainties, executives attribute this to reduced discounts of $1.5-$1.7 per barrel on Russian crude, down from $2.5-$3 last year. An executive suggested October-loading volumes might increase as discounts begin to expand again.“The message from the government is ‘country first, commerce later’,” an industry executive told ET, suggesting that trade negotiations take precedence over temporary economic difficulties.Officials and executives indicate that India remains in resolute discussions with the US, believing that yielding on oil imports could lead to additional demands. They note that the government, including PM Narendra Modi, external affairs minister S Jaishankar and commerce minister Piyush Goyal, have indicated preference for supporting exporters through challenges rather than submitting to US demands.Also Read | Donald Trump’s 50% tariffs come into effect today: India prepares multi-pronged strategy to shield economy; details hereIndian oil industry representatives assert that transitioning from Russian oil is technically feasible due to abundant global supply and favourable prices, yet yielding to American pressure remains undesirable. They indicate that a rapid transition to alternative sources would cause only slight, short-term effects on global oil prices.“Supply lines will only have to be readjust. Russian oil is not sanctioned and will remain on the global market. The balance between supply and demand will not be swayed,” one executive said, noting that buyers of discounted Russian barrels in place of Indian refiners would simply substitute their original supplies.The industry remains vigilant about the situation, recognising the importance of maintaining consistent and sufficient crude oil supply for their refining operations.Also Read | ‘We have red lines…’: Jaishankar’s clear message on India-US trade deal; slams ‘sanctions’ on Russia oil, says ‘if you don’t like it, don’t buy it’
