India Deepens Russia Ties Amid US Tariff Pressure Over Oil Purchases
As the US doubled tariffs on Indian goods to 50% over New Delhi's purchase of Russian oil, India is strengthening its economic ties with Moscow. External Affairs Minister S. Jaishankar encouraged Russian companies to engage more intensively with India, while Russia called US pressure "unjustified" and affirmed that energy cooperation would continue. Meanwhile, prominent Republican Nikki Haley urged the US administration to treat India as a "prized democratic partner" to counter China, not an adversary.
Unpacked:
The US doubled tariffs to pressure India to reduce its imports of Russian oil, which Washington views as supporting Russia amid the ongoing Ukraine conflict. The tariffs are part of broader US efforts to isolate Russia economically and discourage countries from engaging in substantial energy trade with Moscow.
India-Russia bilateral trade reached about $69 billion in 2024, with ambitions to rise to $100 billion by 2030. Major cooperation areas include energy (oil, LNG, nuclear), chemicals, metallurgy, transport engineering, digital technologies, and agriculture. There is also ongoing work on a free trade agreement between India and the Eurasian Economic Union.
India and the Eurasian Economic Union have concluded the Terms of Reference for a proposed Free Trade Agreement (FTA). Once finalized, this FTA is expected to facilitate greater trade, investment, and economic collaboration between India and member countries, including Russia.
Some US politicians argue that India is a vital democratic partner in countering China’s global influence. They believe that strengthening ties with India is strategically important for US interests in Asia and the Indo-Pacific, and warn that treating India as an adversary could undermine efforts to balance China’s rise.