India will continue purchasing oil from Russia despite threats of penalties from US President Donald Trump, two Indian government sources told the Reuters news agency on August 2, speaking on condition of anonymity due to the sensitivity of the discussions the agency says.

In July, Trump indicated via his social media platform, Truth Social, that India could face further punitive measures for its continued purchases of Russian arms and energy. This follows the imposition of a new 25% tariff on Indian exports to the United States.

Speaking to reporters on August 1, Trump also claimed he had been informed that India would soon cease its oil trade with Russia. However, officials in New Delhi have since insisted there are no immediate plans to alter the country's energy procurement strategy.

“These are long-term oil contracts,” said one of the Indian sources to Reuters. “It is not so simple to just stop buying overnight.”

A second official defended the imports, arguing that India’s continued sourcing of Russian crude has played a stabilising role in the global market, noting that oil prices have remained relatively subdued despite sweeping Western curbs on Russia’s energy sector.

Unlike crude from Iran or Venezuela, Russian oil is not subject to direct international sanctions. India is reportedly purchasing Russian grades at rates below the European Union’s price cap, the source added.

The New York Times also cited two senior Indian officials on Saturday, who confirmed there had been no change in the government's policy on oil imports.

A Foreign Ministry spokesperson in India, Randhir Jaiswal, addressed the matter indirectly during a regular press briefing on August 1 saying “We have a steady and time-tested partnership with Russia.”

The White House has yet to make any substantial comments in repsonse.

Russia has become India’s top oil supplier, accounting for roughly 35% of the country’s total imports with India now the world’s third-largest oil importer and consumer, imported an estimated 1.75mn barrels per day of Russian oil between January and June 2025 - up 1% from the same period last year, according to data shared with Reuters.

Despite India’s firm stance, some state-run refiners appear to be re-evaluating their positions due to shifting market dynamics. Sources told Reuters that Indian refiners have stopped placing new orders for Russian crude after discounts narrowed to their lowest point since Western sanctions on Moscow were first introduced in 2022. Included in this numbers is Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Mangalore Refinery and Petrochemicals Ltd

Meanwhile, Nayara Energy - a major private-sector refinery partially owned by Russian entities, including state oil giant Rosneft has come under new scrutiny. The European Union recently imposed sanctions on the company, prompting its chief executive to resign.

According to Reuters, three tankers carrying oil products from Nayara have now been unable to offload their cargoes due to complications arising from the new EU measures.