The ongoing debate around India buying Russian oil continues to shape international headlines. India buying Russian oil has become a central point in a growing tension between New Delhi and Washington. Recently, former US President Donald Trump announced a steep 25% tariff on Indian imports, criticizing India for continuing to purchase crude oil from Russia — a country under intense Western scrutiny due to its invasion of Ukraine.
This bold move could strain diplomatic and trade relations between two of the world’s largest democracies. Trump also hinted at imposing an additional “penalty” on India for purchasing military equipment from Russia. Despite these threats, India has made it clear there will be no immediate halt in its energy dealings with Russia. Why? Let’s break it down.
Trump’s Aggressive Tariff Move: A Threat or Strategy?
On Thursday, Trump justified the tariff by citing:
- India’s role as one of Russia’s largest energy customers, alongside China.
- A “massive trade deficit” with India.
- India’s “high tariffs” on US goods, calling them “among the highest in the world.”
He also linked Indian oil purchases to the ongoing war in Ukraine, stating:
“Everyone wants Russia to stop the killing in Ukraine — all things not good!”
However, just a day later, Trump softened his stance slightly, saying:
“I understand that India is no longer going to be buying oil from Russia. That’s what I have heard. I don’t know if that’s right or not.”
But sources in the Indian government quickly clarified that there would be no immediate change in India’s oil import strategy.
Why India Buying Russian Oil Is Unlikely to Stop
As the data shows, India buying Russian oil has steadily increased since the Ukraine crisis began. Despite pressure from the US, India is unlikely to reverse its decision. Here are the major reasons:
1. Long-Term Contracts Can’t Be Cancelled Overnight
According to Indian officials, these are multi-year contracts that involve complex legal and logistical frameworks.
“It is not so simple to just stop buying overnight,” said one senior government official.
2. Shielding Global Oil Prices
India’s consistent purchases of discounted Russian crude have helped prevent a global surge in oil prices.
Had India backed out, oil prices could have exceeded $137 per barrel, further worsening global inflation, according to industry experts.
3. No Direct Sanctions on Russian Oil
Unlike Iranian or Venezuelan oil, Russian crude isn’t subject to direct international sanctions. This gives India a legal pathway to continue importing, especially at rates below the EU’s price cap.
4. National Interest Comes First
India has consistently made decisions based on strategic autonomy. Officials said that energy choices are made by looking at what’s available in the market and in accordance with global circumstances.
“India’s energy decisions have been guided by national interest and have also contributed positively to global energy stability,” a top diplomat told ANI.
5. India’s Role in Stabilizing the Market
Experts believe India helped absorb discounted Russian crude at a time when OPEC production cuts threatened supply chains.
“Had India not absorbed Russian crude, combined with OPEC cuts of 5.86 mb/d, global oil prices could have surged,” a source noted.
The Real Reasons Behind India Buying Russian Oil Despite Pressure
- Russia now supplies over one-third of India’s total crude oil imports.
- In the first half of 2025, India imported 1.75 million barrels per day from Russia — up 1% year-on-year.
- In 2024, India’s total Russian crude imports stood at $52.73 billion.
- According to NITI Aayog’s report, India saw a 19.69% year-on-year rise in imports from Russia in Q1 FY25.
- In 2023, Russia contributed 26% of India’s total imports in the category of mineral fuels and oils.
Clearly, India has become significantly reliant on Russia for affordable energy, which also keeps domestic inflation in check.
Strategic Impact of India Buying Russian Oil on Global Energy Prices
Trump’s claim that the US “has done very little business with India” doesn’t align with the data.
- The US is India’s largest export destination, accounting for 33% of total merchandise exports.
- India exports refined petroleum products, pharmaceuticals, electrical machinery, and more to the US.
- There is still untapped potential in Indian service exports, especially in the tech and consulting sectors.
According to NITI Aayog:
“There is significant potential for Indian service exporters to expand their presence in major export markets such as the USA.”
This makes Trump’s “little business” claim a questionable one, at best.
What Are Tariffs and How Do They Affect Trade?
Tariffs are essentially taxes on imports. They can change trade dynamics in two ways:
How Tariffs Hurt the Imposing Country (US):
- Imported goods become more expensive.
- Some US manufacturers who rely on foreign materials may see their costs rise.
- Those costs are often passed to consumers, leading to higher prices for everyday goods.
How Tariffs Hurt the Target Country (India):
- Indian goods become less competitive in the US market.
- This could reduce demand for Indian exports and potentially hurt job creation in affected industries.
The Road Ahead: Strategic Autonomy Remains Key
India has made one thing clear: it will not bow to external pressure when it comes to energy decisions. While India values its strategic partnership with the US, especially on defense and trade, energy security and price stability are paramount.
The Trump tariff threat may make headlines, but India’s long-term energy deals with Russia, coupled with its commitment to global oil price stability, make a sudden policy reversal highly unlikely.
Final Thoughts
India’s position on Russian oil is not just about economics; it’s about sovereignty, global responsibility, and national interest. The US might not like India’s choices, but in a multipolar world, energy independence matters more than political pressure. Criticism aside, India buying Russian oil reflects a calculated national strategy rather than a political stance
For now, India buying Russian oil will continue — with pragmatism, legality, and long-term vision guiding the way.
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