India Prioritizes Economic Interests Over US Tariff Threat in Russian Oil Trade

India maintains its strategic decision to purchase Russian oil, prioritizing economic interests over potential penalties from the United States, according to AS Sahney, Chairman of Indian Oil Corporation (IOC). Sahney confirms that the acquisition of Russian crude remains primarily a matter of pricing advantages and practical processing considerations.

While discounts on Russian crude like Urals have varied significantly, the Indian Oil Corporation bases its buying decisions solely on economic rationale. This approach remains unchanged even after US President Donald Trump's announcement of a 25% additional tariff on US imports from India, raising concerns about possible impacts on India's exports.

Indian buyers continue to leverage the price competitiveness of Russian crude, which now consists of a substantial portion of the country's oil imports. Until any formal sanctions are introduced, India's procurement strategy will remain guided by economic logic without directions to significantly alter import volumes from any specific nation.

(With inputs from agencies.)