India has begun to look for alternative sources of oil supply amid Donald Trump’s statements about the possible strengthening of sanctions against Russia. This has caused concern about potential disruptions in the supply of Russian raw materials, informs Bloomberg.
Indian refiners have turned to the spot market for non-Russian suppliers to reduce dependence on Russian oil after Trump’s threats. State-owned oil refining companies Bharat Petroleum Corp. and Hindustan Petroleum Corp. intensified the search for additional batches of oil that can be delivered in May.
Possible supply regions include the Middle East, the North Sea and the Mediterranean, sources familiar with the situation said. Usually, trading agreements for barrels destined for the next month are completed in early March.
It will be recalled that on March 30, Trump warned about the possibility of introducing secondary tariffs against buyers of Russian oil if the Russian president does not agree to a ceasefire in Ukraine. The announcement sent benchmark futures higher, with West Texas Intermediate jumping 3.1% on March 31, its biggest jump in nearly 11 weeks.
After the start of Russia’s full-scale war against Ukraine, India significantly increased its imports of cheaper Russian oil as Moscow began offering more favorable terms in an attempt to circumvent Western sanctions. As recently as last month, both state-owned and private Indian refineries confidently declared their ability to secure the necessary volumes of supplies from Russia, despite temporary difficulties associated with new restrictions from the United States.
In 2024, Russian oil provided almost 40% of India’s imports, in particular, a significant share was the supply of the Urals grade from western ports. In recent years, the country has gradually reduced its dependence on oil from the Middle East and Africa thanks to attractive offers from Russia.
