India Reaffirms Russian Oil Purchases Despite US Pressure
Amid threats of tariffs from US President Donald Trump, Indian government sources have confirmed that oil refiners continue to purchase Russian crude based on favourable pricing and economic factors. The Ministry of External Affairs stated that India’s energy procurement is guided by national interest and that its relationship with the US has weathered many challenges. The clarification comes after Trump claimed he "heard" India would halt Russian oil imports, a move he would consider a "good step."
Unpacked:
India prioritizes national economic interests and seeks favorable pricing, as Russian oil is often cheaper than alternatives. Additionally, India aims to diversify its energy sources and maintain energy security, even amid international pressure and shifting geopolitical dynamics.
Russian oil has become highly significant for India, accounting for 33–43% of India’s total crude imports in recent months. In June 2025, India imported about 2 million barrels per day from Russia, making it the second-largest purchaser of Russian fossil fuels after China.
If the US imposes higher tariffs, India may need to reduce Russian oil imports and buy more from West Asian, African, or US suppliers, raising import costs by several dollars per barrel. Overall US tariffs on Indian goods could reach about 26.6%, affecting trade and potentially increasing domestic fuel prices.
Yes, India's Russian oil imports surged to an 11-month high in June 2025 but declined by 22–27% in July as Indian refiners diversified supply, partly in response to anticipated US penalties. Imports from other regions, including the US, increased as India adjusted its procurement strategy.