Indian officials confirmed Saturday the country is not altering policy and will continue buying oil from Russia, despite threats of a financial "penalty" from U.S. President Donald Trump.

The fallout from stalled US-India trade talks could severely disrupt the flow of Russian crude to Indian refiners.

This comes as discounts narrowed in July and U.S. President Donald Trump warned countries not to purchase oil from Moscow, industry sources said.

No instructions were also given regarding oil imports from other sources instead of Russia

According to the source, "India's energy purchases are driven by national interests and market conditions"

President Trump said last week that he would punish India if it did not cut off Russian oil imports, but he did not specify what the penalty might be.

The US president said he would penalise India if it didn’t cut Russian oil imports, on top of a general 25 per cent tariff

No pause on Russian imports by Indian oil firms which base decisions on ‘price, grade of crude, logistics and economic factors’

Indian officials confirmed Saturday the country is not altering policy and will continue buying oil from Russia, despite threats of a financial "penalty" from U.S. President…

Both state-run and private refiners in India are allowed to buy from their preferred sources, and crude purchases remain a commercial decision.

Despite U.S. President Donald Trump telling reporters Friday that he "heard" India would halt purchases, officials in New Delhi have pushed back.

New Delhi called out the EU and the U.S., saying that they were also engaging in trade with Moscow.