Bahrain: India's crude oil import sector could face fresh uncertainty after indications from the Trump administration that the concessions allowing New Delhi to continue purchasing Russian crude may not be extended.
During a visit to Bahrain, US Secretary of State Marco Rubio said Washington is still considering the possibility of ending the exemptions related to Russian oil purchases. While no final decision has been taken, the matter remains under review, with President Donald Trump expected to make the final call after assessing prevailing market conditions.
The development has raised concerns because India has become heavily dependent on discounted Russian crude amid disruptions in global energy markets linked to conflicts in West Asia. Any move to withdraw the concessions could place additional pressure on India's energy imports and procurement strategy.
The issue comes at a time when imports of Russian crude have reached record levels. Preliminary estimates released by Kpler show that India imported an average of 2.6 million barrels of Russian oil per day in June. The figure accounted for 53.5 per cent of the country's total crude oil imports during the month, underlining the growing importance of Russian supplies to India's energy needs.
The Trump administration had earlier indicated that sanctions policy would be calibrated to avoid triggering a sharp rise in global oil prices. However, with crude prices retreating from recent highs, concerns over supply disruptions have eased, potentially giving Washington greater room to tighten restrictions.
Rubio's remarks suggest that the future of the exemptions remains uncertain and is actively being discussed within the US administration. Any decision to end the concessions could have significant implications for India's oil import basket, particularly at a time when Russian crude accounts for more than half of its total imports.