New Delhi, August 3, 2025 – India will continue to buy Russian oil despite threats of tariffs from U.S. President Donald Trump, government sources confirmed today. The decision underscores India’s commitment to securing affordable energy supplies amid global geopolitical tensions. India, one of the world’s largest oil importers, has relied heavily on Russian crude since sanctions disrupted global markets in 2022. Sampadak Express reports that India’s oil imports from Russia, which account for nearly 40% of its crude supply, are driven by discounted prices and long-term contracts. The U.S. has signaled potential penalties, citing concerns over Russia’s war in Ukraine, but India maintains its neutral stance, prioritizing energy security.
Geopolitical Balancing Act
India’s decision to buy Russian oil reflects a delicate balancing act between economic needs and international relations. Russia’s discounted crude has saved India billions, with imports rising to 2 million barrels per day in 2024, according to Reuters. However, Trump’s proposed tariffs could complicate this arrangement, potentially increasing costs for Indian refiners. Sampadak Express reports that New Delhi is engaging in diplomatic talks to mitigate risks, emphasizing its non-aligned foreign policy. India’s External Affairs Ministry has reiterated that its energy purchases comply with international regulations, avoiding direct violations of Western sanctions. This stance has drawn scrutiny but also highlights India’s growing influence in global energy markets.
Economic Implications for India
The choice to buy Russian oil carries significant economic ramifications. Russia’s discounted crude has helped India manage inflation and stabilize fuel prices domestically. Bloomberg notes that Indian refiners, such as Reliance Industries, have profited from processing cheap Russian oil into fuels for export to Europe. However, U.S. tariffs could raise costs, forcing India to diversify suppliers or absorb higher expenses. Analysts warn that any disruption could impact India’s trade deficit and energy-intensive industries. Despite these risks, India’s long-term contracts with Russia provide a buffer, ensuring supply stability through 2026.
India’s resolve to continue importing Russian oil signals a pragmatic approach to energy security amid global uncertainties. By maintaining strong ties with Moscow while navigating U.S. pressure, India is carving a strategic path in a polarized world. The government’s focus on affordability and supply chain resilience will likely shape its energy policy in the coming years. As global oil dynamics evolve, India’s ability to balance economic and geopolitical priorities will remain critical.
