Moscow (Reuters) -President of the United States Donald TrumpIndia’s request to stop Russian oil imports may threaten billions in Russian revenue, and calls on Moscow to take revenge by stopping the US -led large oil pipeline and may lead to a new global supply crisis.
India, the third largest oil importer in the world, has become the largest Russian oil buyer since 2022, bought up to 2 million barrels per day of oil, which represents 2 % of the global offer. Other senior buyers are China and Turkey.
JP Morgan analysts said this week that the Indian track is very important for the Kremlin, as if it is disrupted, it may lead him to revenge by closing the CPC pipeline from Kazakhstan, where Chevron in the United States carries Chevron and Exxon large stakes in JP Morgan this week.
“Russia is not without influence,” said the American bank.
Trump threatened the tariffs of up to 100 % on countries that buy Russian oil unless Moscow reached a peace agreement with Ukraine by 7-9 August. A 25 % tariff begins on all imports of American goods from India on Friday.
Reuters reported on Thursday that Indian state refineries have stopped the purchases of Russian oil this week amid Trump’s threats.
reorganization
India has only started buying large quantities of oil from Russia, the second largest oil exporter in the world, since 2022. It became a large importer after Europe, the former agent in Russia, imposing a ban on Russian oil on its military actions in Ukraine. Rosneft oil giant in Russia has a large share in one of the largest oil refineries in India.
India is now 35 % on Russian oil imports of $ 50.2 billion in the fiscal year 2024-25, according to government data in India.
“The cutting of this flow requires a huge reorganization of commercial flows,” said Aldo Spanger of BNP Paribas, adding that the global offer has already spanned.
India buys all varieties and Russian oil grades – including the Urals of Western Ports, ESPO and Sokol from the Pacific Ocean and some degrees of Arctic, according to LSEG data.
Urls will strike hard if India stops buying because it buys up to 70 % of the largest export degree in Russia by size. The Minister of Oil in India said the country could find alternative supplies.
India will need to raise imports of crude and the Middle East or cut refining operations, which leads to a rise in diesel prices, especially in Europe, which import fuel from India.
“The Indian refineries will continue to struggle to replace the heavy quality of Russian crude until they end up peeling,” said Nile Crossby of the Sparta commodity.
Low income
Russia has been able to continue selling oil since 2022 despite international sanctions, although it sells it with discounts on global prices.
