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Informist, Tuesday, Oct. 28, 2025

 

--Govt official: Not issued any advisory to oil cos on buying Russian crude 

--Govt official: No stance on Russian crude oil purchases 

--Govt official:Can't comment on Russia crude buys as US deal in final stage 

 

By Narayana Krishna and Anand JC

 

HYDERABAD/MUMBAI – The Indian government has not issued any advisory to firms here regarding their purchase of Russian crude oil, a government official said on Tuesday. The clarification comes days after the Trump administration in the US imposed severe sanctions on two Russian oil firms in a bid to get Moscow to stop its war against Ukraine. India is the biggest importer of seaborne Russian crude. 

 

Reliance Industries Ltd., the largest Indian importer of Russian crude, had said that it would fully comply with the Indian government's guidance to this effect, if any. "There is no requirement of a stance by the government, because this is all purchased by companies," the government official said on condition of anonymity. 

 

"A company decides on the basis of economics and on the basis of law. There is no question of an advisory," the official said. If the government ever has a stance, it will spell that out directly, the official said. "The government never said anything earlier, the government never said anything now. They (companies) are free to buy," the official said. 

 

India accounted for 40% of Russian oil exports in the first nine months of 2025, according to media reports. The Trump administration imposed punitive tariffs of 25% on top of another 25% on India in August, as it looks to weaken Russia's coffers and put an end to the war in Ukraine. The move soured India's relationship with the US, with New Delhi calling the move "unfair, unjustified, and unreasonable". Yet, the two countries remain in dialogue to mend ties.

 

New Delhi and Washington are currently engaged in talks as the two nations look to wrap up a bilateral trade pact. Five rounds of talks have already been completed and the deal is very close to conclusion, according to news agency Press Trust of India. 

 

The government official quoted earlier said it might not be right to conflate India's Russian oil purchase and India's trade deal with the US. "Trade deal with the US is yet to be closed. Negotiations are still going, won't say anything that impinges on the deal," the official said. 

 

India is currently among the largest buyers of Russian oil, having increased purchases after Moscow invaded Ukraine in 2022. Back then, companies were buying Russian oil at steep discounts, which have moderated to low levels recently. 

 

"We never gave them a direction to buy more. So, there is no question of us giving any direction to buy more or buy less," the official reiterated. 

 

The official said that Indian companies were still charged an "Asian premium" on the oil they import. This is the extra charge collected by the Organization of the Petroleum Exporting Countries from Asian counterparts such as India and China due to their comparatively higher demand for oil.

 

"Asian premium is still going on. It changes every month," the official said. "The quantum changes every month, amount changes, but they continue the charge."  End

 

Edited by Avishek Dutta

 

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