India’s Oil Refiners Scour Global Markets Amid Trump-Putin Summit

Refiners in India, the world’s top importer of seaborne Russian crude, are scouring the globe for alternative supplies, hedging their bets ahead of a summit between the US and Russian leaders.

Background: India’s Oil Imports

India has long had close ties to Russia, but its oil imports from the country have increased significantly since 2022, after the invasion of Ukraine and a $60-per-barrel price cap imposed by the Group of Seven nations.

Current Developments: Trump-Putin Summit

President Donald Trump, eager to gain traction in talks with Vladimir Putin, has demanded that India stop purchases of cut-price crude that fuels the Kremlin’s “war machine,” and last week doubled tariffs on the country’s goods as punishment.

Impact on Indian Refiners

Indian state processors have bought large volumes of non-Russian crude this week for prompt September-October delivery, extending a buying spree spurred by an early threat by Washington. Indian Oil Corp. and Bharat Petroleum Corp. have taken cargoes from all corners of the market including the US, but also Brazil and the Middle East.

Alternative Supplies: Saudi Arabia and Others

These spot market purchases come on top of supplies from long-term sellers like Saudi Arabia, which is set to send about 22.5 million barrels of crude to India for September loading, traders said. India’s monthly imports from Saudi last exceeded that level in September 2024, according to data from analytics firm Kpler.

Market Watch: Trump-Putin Summit

The meeting between Trump and Putin in Alaska on Friday will be closely watched by the industry, eager for clues as to whether the US will ease pressure on Russian sales — or crank it up.

India-Russia Relations: Foreign Affairs Minister’s Visit

Foreign Affairs Minister S. Jaishankar will be traveling to Moscow next week with a delegation that’s likely to include Petroleum Secretary Pankaj Jain, the most senior bureaucrat in the oil ministry.

Historical Context: India’s Oil Imports

Historically, India has not been a significant importer of Russian crude, depending more heavily on the Middle East. All that changed in 2022, after the invasion of Ukraine and a $60-per-barrel price cap imposed by the Group of Seven nations that aimed to limit the Kremlin’s oil revenues while keeping supplies flowing globally.

Current Oil Market: Challenges and Opportunities

India’s imports amounted to about 1.7 million barrels a day, or nearly 37% of the nation’s overseas purchases, in mid-2025. They were mostly of Urals crude, a medium-density grade that can be interchanged with barrels from across the Middle East.

Private Refiners: Reliance Industries and Nayara Energy

For now, Indian private refiners such as Reliance Industries Ltd. and Nayara Energy are still expected to continue buying Russian crude, some of which is procured via term contracts, even as state refiners hold back on spot purchases for loading in October.

Conclusion: India’s Oil Market and the Trump-Putin Summit

The Trump-Putin summit will have significant implications for India’s oil market, and investors should keep a close eye on developments. With the US pressuring India to stop buying Russian crude, Indian refiners are seeking alternative supplies, which could impact the global oil market.

For more information on the Indian oil market and its implications for investors, click here.

Also, check out our investing in India guide for more insights on the Indian market.