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Indian officials deny policy change on Russian oil imports

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Foreign ministry emphasises independent energy decisions

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Trump has threatened tariffs on Russian oil buyers

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Russia remains India's top oil supplier

(Updates with India's justification of buying Russian oil)

By Shivam Patel and Chandni Shah

NEW DELHI, Aug 2 (Reuters) - India will keep purchasing

oil from Russia despite U.S. President Donald Trump's threats of

penalties, two Indian government sources told Reuters on

Saturday, not wishing to be identified due to the sensitivity of

the matter.

On top of a new 25% tariff on India's exports to the U.S.,

Trump indicated in a Truth Social post last month that India

would face additional penalties for purchases of Russian arms

and oil. On Friday, Trump told reporters he had heard that India

would no longer be buying oil from Russia.

But the sources said there would be no immediate changes.

"These are long-term oil contracts," one of the sources

said. "It is not so simple to just stop buying overnight."

Justifying India's oil purchases from Russia, a second

source said India's imports of Russian grades had helped avoid a

global surge in oil prices, which have remained subdued despite

Western curbs on the Russian oil sector.

Unlike Iranian and Venezuelan oil, Russian crude is not

subject to direct sanctions, and India is buying it below the

current price cap fixed by the European Union, the source said.

The New York Times also quoted two unnamed senior Indian

officials on Saturday as saying there had been no change in

Indian government policy.

Indian government authorities did not respond to Reuters'

request for official comment on its oil purchasing intentions.

However, during a regular press briefing on Friday,

foreign ministry spokesperson Randhir Jaiswal said India has a

"steady and time-tested partnership" with Russia.

"On our energy sourcing requirements ... we look at what

is there available in the markets, what is there on offer, and

also what is the prevailing global situation or circumstances,"

he said.

The White House did not immediately respond to requests for

comment.

INDIA'S TOP SUPPLIER

Trump, who has made ending Russia's war in Ukraine a

priority of his administration since returning to office this

year, has expressed growing impatience with Russian President

Vladimir Putin in recent weeks.

He has threatened 100% tariffs on U.S. imports from

countries that buy Russian oil unless Moscow reaches a major

peace deal with Ukraine.

Russia is the leading supplier to India, the world's

third-largest oil importer and consumer, accounting for about

35% of its overall supplies.

India imported about 1.75 million barrels per day of

Russian oil from January to June this year, up 1% from a year

ago, according to data provided to Reuters by sources.

But while the Indian government may not be deterred by

Trump's threats, sources told Reuters this week that Indian

state refiners stopped buying Russian oil after July discounts

narrowed to their lowest since 2022 - when sanctions were first

imposed on Moscow - due to lower Russian exports and steady

demand.

Indian Oil Corp, Hindustan Petroleum Corp

, Bharat Petroleum Corp and Mangalore

Refinery Petrochemical Ltd have not sought Russian

crude in the past week or so, four sources told Reuters.

Nayara Energy - a refinery majority-owned by Russian

entities, including oil major Rosneft, and major buyer

of Russian oil - was recently sanctioned by the EU.

Nayara's chief executive resigned following the sanctions,

and three vessels laden with oil products from Nayara Energy

have yet to discharge their cargoes, hindered by the new EU

sanctions, Reuters reported last week.