India Cuts Russian Oil Imports Amid US Tariff Threats

The Government of India is reducing its reliance on Russian crude oil following the enactment of the Lindsey O Graham Sanctioning Russia and Iran Act. This law grants President Donald Trump the authority to impose tariffs of up to 100 percent on countries that purchase Russian energy. Russian imports fell 16.5 percent in August to 2.1 million barrels per day, with September tracking lower at approximately 1.9 million barrels per day, down from a July peak of 2.8 million.

Indian refiners are now evaluating spot-market options for October and November deliveries and may limit Russian imports to 20 to 30 percent of total intake to mitigate US sanctions risk. This shift coincides with increased purchases from Iraq and expanded shipping operations by the Abu Dhabi National Oil Company to bypass disruptions in the Strait of Hormuz. Despite these declines, Russia remains India's top supplier.

Finance Minister Nirmala Sitharaman defended the continued trade, arguing that exiting the Russian market would cause global oil prices to spike due to a limited available pool. She noted that Indian refineries are specifically suited for the density and sulfur content of Russian crude. While New Delhi continues to negotiate a trade deal with Washington, officials maintain that procurement is driven by affordability, availability, and national energy security.