New Delhi (Brussels Morning Newspaper) – According to the New York Times on Saturday, Indian officials announced they will continue buying oil from Russia despite the threat of penalties from Mr. Trump, which was a development that New Delhi believed it had previously resolved.
U.S. President Donald Trump stated last week that, as part of his latest tariff measures, he would inflict an unspecified additional penalty on India if it failed to stop importing Russian crude oil. On Friday, he also seemed to confirm reports of a recent decrease in Russian oil shipments to India.
“I understand that India is no longer going to be buying oil from Russia,”
Trump briefed journalists.
“That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens.”
However, on Saturday, the NY Times reported that two senior New Delhi officials stated there had been no shift in policy. One official expressed that the administration had “not given any direction to oil companies” to reduce imports from Moscow.
The US president did not state what the liability would be if India were to disregard his call to decrease Russian oil imports.
What impact will new US tariffs have on India?
In addition, President Donald Trump has recently announced a new round of tariffs against almost 70 countries, including India, beginning on August 7, 2025 India will be assessed a 25% tariff on goods exported to the U.S. This rate is a slight reduction from what Trump called for in April, but nevertheless demonstrates a substantial escalation in the ongoing trade tensions between the U.S. and numerous partners.
India has stated clearly that while it is willing to continue its trade negotiations with the U.S., it will not compromise on areas it deems “no-goes” like agricultural products, dairy, and by-products of genetically modified (GM) crops.
How much Russian oil does India now import?
India has significantly boosted its imports of Russian oil since the Ukraine conflict started. Russia now accounts for over a third of India’s oil imports — a sharp rise from under 1% before the war. With over two million barrels of crude oil brought in daily, India ranks as the second-largest importer of Russian oil, behind China.
In the initial months following Russia’s invasion of Ukraine, New Delhi faced significant pressure to reduce its economic connections with Russia. This pressure persisted as Indian oil imports increased. However, by the second year of the war, the tone regarding India’s imports started to change.
How did India justify buying oil from Russia?
According to experts, it seemed that India had persuaded its American and European allies that increasing its buy of inexpensive Russian oil—despite the price cap set by the European Union and G7—was beneficial for stabilizing global oil prices.
Early last year, senior officials from the U.S. Treasury Department visiting New Delhi stated that India was following a successful strategy: allowing Russian oil to continue entering the global market at a low enough price to reduce Russia’s earnings.
“They bought Russian oil because we wanted somebody to buy Russian oil at a price cap; that was not a violation,”
Eric Garcetti, then the U.S. ambassador to New Delhi, stated last year.
“It was the design of the policy.”
