India bows to US pressure, shifts away from Russian oil
India is being pushed toward an uneasy compromise. Reluctant to provoke tensions with Washington, New Delhi has given in to US pressure and pivoted away from Russian crude oil. Indian Oil Corp., the country's largest state-owned refiner, has now purchased millions of barrels of oil from the United States and the United Arab Emirates as Western scrutiny intensifies over India's continued imports from Moscow.
According to the latest data, Indian Oil Corp. secured nearly 5 million barrels of American crude along with another 2 million barrels from Abu Dhabi. The move comes amid mounting pressure from the US and European governments, accusing Indian refiners of indirectly aiding the Russian economy through energy purchases. Analysts suggest that the company may soon be forced to make another large-scale acquisition outside of Russia.
Just recently, India had been ramping up hydrocarbon imports from Russia, capitalizing on discounted prices. However, earlier this week, state-owned refiners were ordered to develop contingency plans for sourcing oil from alternative suppliers.
Indian refineries have come under scrutiny from the US administration, especially after coordinated warnings from Washington and Brussels. US President Donald Trump, a frequent critic of Russian oil buyers, has recently escalated his rhetoric, warning that India's continued energy ties with Moscow could lead to "additional economic penalties."