India refiners may cut Russia cargoes as US risk rises

Indian refiners may reduce their purchases of crude shipments from Russia as the threat of US sanctions looms, according to sources familiar with the discussions. Currently, India imports over half of its crude from Russia, but could cut back to 20% to 30% of its total imports. Russia is the world's third-largest crude supplier to India, and its Urals grade is priced at $133 per barrel, making it more expensive than Middle Eastern grades.

The US recently enacted a sanctions bill that allows President Trump to impose tariffs on countries that buy Russian crude, including India. While India has previously faced similar levies and had them lifted, the new legislation could result in fresh punitive tariffs, potentially reaching 100%. India is now closely monitoring whether Washington applies the measures to major Russian energy buyers, including China.

With global crude markets already strained by the closure of the Strait of Hormuz, finding alternative suppliers will be challenging, and India's need for oil is expected to push purchases toward a record 5.4 million barrels per day.