New Delhi: Indian refiners are continuing their imports of Russian crude oil despite mounting pressure from the United States, which recently imposed an additional 25 percent tariff on Indian exports, bringing the total U.S. tariff burden to 50 percent. The move is part of Washington’s effort to reduce India’s dependence on Russian energy supplies, citing concerns over the financing of Russia’s military actions in Ukraine.
Government sources in New Delhi have emphasized that national interests take priority over commercial considerations. Industry executives have confirmed that there are no official directives to halt Russian oil purchases. While some refiners have delayed September-loading cargoes due to reduced discounts on Russian crude, this decision is driven by market economics rather than a strategic withdrawal. A senior industry executive noted that the government’s message to the sector is “country first, commerce later,” reflecting a focus on national energy security.
Russia has become a major supplier of discounted crude to India, accounting for roughly 35 percent of the country’s oil requirements. Analysts warn that moving away from Russian supplies could increase India’s import bill and tighten the global oil market, potentially driving up prices. Maintaining imports from Russia ensures energy security amid ongoing geopolitical uncertainty.
Despite the trade tensions, the United States has signaled continued engagement with India. A senior U.S. embassy official in New Delhi reaffirmed Washington’s commitment to supporting India’s energy security and economic growth through the supply of oil and liquefied natural gas. The official highlighted the United States as a reliable partner while acknowledging India’s sovereign decisions regarding its energy sourcing.
India’s decision to continue importing Russian crude demonstrates a strategic approach prioritizing long-term energy needs and geopolitical autonomy. Observers say the evolving U.S.-India energy dynamic is likely to influence future trade policies and regional energy strategies.