US Urges India to Cease Russian Oil Imports Amid Tariff Pressure
US Energy Secretary Chris Wright publicly called for India to stop buying discounted Russian oil, stating it funds the war in Ukraine. This highlights growing friction, as the Trump administration recently imposed a 25% tariff on Indian goods over this issue. While the US claims it doesn't want to punish India, the move underscores a significant diplomatic and economic challenge for New Delhi, which maintains its imports are vital for its energy security and are governed by market dynamics.
Unpacked:
As of August 2025, Russian oil makes up about 38% of India’s crude oil imports, surpassing traditional suppliers like Iraq and Saudi Arabia, whose shares have declined. Russia is now India’s largest oil supplier, with imports rising to 2 million barrels per day, while the US ranks fifth.
India argues that discounted Russian oil is vital for its energy security and economic stability. As the world’s third-largest oil importer, India relies on affordable supplies to manage domestic fuel prices and meet its growing energy needs, asserting its purchases are based on market dynamics rather than political considerations.
Despite the 25% US tariff announcement in July 2025, India’s Russian oil imports have remained resilient, even increasing in August. Indian refiners report no government directive to reduce Russian imports, and any changes may only become evident later in the year as new policy impacts unfold.
The US contends that India’s purchases of discounted Russian oil help fund Russia’s war in Ukraine, undermining Western sanctions. While US officials claim not to want to punish India, they see tariffs and potential penalties as necessary to discourage trade that supports Russia’s military actions.