India's state-owned oil refineries are currently refusing to purchase Russian oil due to increasing pressure on New Delhi from Washington regarding purchases of Russian oil and threats of imposing tough tariffs, writes Bloomberg with reference to persons directly familiar with the companies' procurement plans.

The material indicates that companies such as Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. plan to temporarily abandon spot oil purchases in the upcoming procurement cycle, until they receive clear instructions from the government.

The publication's sources, speaking on condition of anonymity, also reported that this decision will affect the purchase of the Russian brand of export oil blend Urals in October.

The global oil market has focused on oil purchases from India following US President Donald Trump's decision to double tariffs on all Indian exports to the US as punishment for the country's refineries purchasing Russian oil.

The publication notes that the US's introduction of new tariffs on India, which have not yet affected China, is aimed at putting pressure on Moscow to end the war in Ukraine.

It is indicated that these tensions have affected futures this week, as traders do not rule out the possibility of supply disruptions, as well as Moscow's ability to find alternative buyers if Indian refineries start buying less oil. As of Thursday, August 7, the price of Brent crude oil was little changed and amounted to about $ 67 per barrel.

According to the publication, New Delhi has not officially given any instructions to refineries to stop purchasing Russian oil. Moreover, the government of Indian Prime Minister Narendra Modi has opposed Trump's tariffs.

The publication suggests that it is unlikely that Indian refineries will stop buying oil from Russia altogether, but the reduction in purchases could cause a surge in demand for other types of oil.

Data is provided that at its peak, India imported over 2 million barrels of Russian oil per day, while before the full-scale Russian invasion of Ukraine, imports were almost zero.

India's reaction to Trump's tariffs

UNIAN previously reported that in the event of deepening disagreements between India and the US regarding the purchase of Russian oil, New Delhi may become closer to Russia and China. It is indicated that the first talks between them have already begun. Indian Prime Minister Narendra Modi plans to visit China to participate in the Shanghai Cooperation Organization summit on August 31, where the leaders of Russia and China will be present.

We also wrote that after the White House chief's statement about increasing tariffs on Indian exports to 50%, The Indian Prime Minister said the country was ready and he understands that he will have to pay a high price. The new tariffs could come into effect as early as August 27 and will affect key sectors of the Indian economy, including textiles, pharmaceuticals and IT services.