Indian companies suspended the purchase of Russian oil after U.S. President Donald Trump threatened to impose a 100% tariff on Indian imports due to trade with Russia. According to Reuters, this happened after Trump's threats, Indian state-owned oil refineries rejected Russian oil.
The purchases of Russian oil were suspended last week due to the decline in the price advantage of oil, as well as due to the threat of tariff imposition. Representatives of state companies and the Ministry of Petroleum of India have not yet commented on the situation.
In conditions of increased risk and loss of discounts, oil from Russia has become less attractive to the Indian market.
Indian companies that previously bought Russian oil are now seeking alternatives in the spot markets. Despite this, private companies Reliance and Nayara continue to be the largest buyers of Russian oil in India.
State-owned companies control over 60% of refining capacity in India, which amounts to about 5.2 million barrels per day.
Indian companies suspended the purchase of Russian oil due to the threat of tariffs and the loss of discounts on supplies. State enterprises agreed to find alternatives in the spot markets, but private companies continue to buy oil from Russia.