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Acknowledged: Notable Elephant Grandeur in India

Trump Declares India to Cease Purchasing Russian Oil, However, Remains Uncertain; move increases tension in U.S.-India relations already strained by U.S. tariffs and assertive actions. Despite evading direct conflict, India displays no intention of reducing ties with Moscow, with Putin's...

The Preeminent Elephant in India
The Preeminent Elephant in India

Acknowledged: Notable Elephant Grandeur in India

India's ongoing purchases of Russian oil have become a point of contention in its relations with the United States. Despite President Trump's statements and the imposition of U.S. tariffs, India remains one of Russia's largest oil buyers, accounting for about 35% of India's total oil imports in the fiscal year 2024-25.

The increased reliance on Russian crude began in 2022, when oil was sold at significant discounts capped at $60 per barrel to help Russia maintain energy revenue amid Western sanctions. Although the discount margin has decreased, India continues to import Russian crude due to competitive pricing and geopolitical considerations.

In June 2025, India's Russian crude oil imports even rose 8% month-on-month, reaching their highest levels since July 2024, despite an overall 6% drop in India's global crude imports that month.

The U.S. has pushed back against India's continued Russian oil purchases, with former President Trump signing executive orders imposing additional tariffs — up to 50% — on Indian exports. This creates a dilemma for India: ceasing Russian oil imports would increase energy costs and force reliance on costlier Middle Eastern, U.S., or African crude supplies, while continuing could strain trade ties with the U.S., India's largest export market.

Indian refiners, however, have not abandoned Russian oil. Some analysts expect India to hedge its purchases by scaling back but not eliminating imports anytime soon. India also maintains some flexibility to revert to traditional Middle Eastern suppliers through existing contracts if needed.

The U.S.-India relationship has seen a deterioration, not just in trade warfare, but also touching on sensitive issues of security and counter-terrorism. The U.S. Secretary of State, Marco Rubio, has called India a "source of irritation" in U.S.-India relations due to its purchase of Russian oil. U.S. Deputy Chief of Staff, Stephen Miller, has accused India of aiding the conflict in Ukraine by purchasing Russian oil.

Prime Minister Narendra Modi, however, has refuted President Trump's claims about telephone conversations between the two leaders since the Pulwama terror attack. Modi has also stated that the Indian economy is on the rise and urged for strengthening economic sovereignty and developing the domestic market. Modi has also called for supporting national production and buying only goods made in India.

Last Saturday, Prime Minister Modi issued a stern warning to Islamabad, stating that the anti-terrorist operation "Sindur" could be extended. This suggests that India's focus on security and counter-terrorism remains a priority, despite the ongoing trade tensions with the U.S.

The New York Times reports that India will continue purchasing Russian oil, despite President Trump's claims. This decision is likely to be influenced by economic, strategic, and diplomatic considerations.

It is important to note that there are no confirmed instructions from Indian authorities to oil companies to stop buying Russian oil. The Indian Foreign Minister, Subrahmanyam Jaishankar, has stated that trade issues were not linked to the current situation in Kashmir during talks with the U.S.

India, as the world's third-largest oil consumer, with a high level of dependence on imports, is one of the largest buyers of Russian energy resources, along with China. The U.S. has imposed 25% tariffs on Indian goods, adding to the economic pressure on India.

President Trump's repeated claims that he acted as a peacemaker in South Asia have drawn sharp criticism from Delhi. Trump's statement that it's unacceptable for India to finance the war in Ukraine by buying oil from Russia has further escalated tensions in the U.S.-India relationship.

In conclusion, India's decision to continue importing Russian oil despite U.S. pressure and tariffs reflects a complex web of economic, strategic, and diplomatic considerations. The ongoing trade tensions between the U.S. and India are not limited to economic issues but also touch on sensitive issues of security and counter-terrorism. The future of U.S.-India relations remains uncertain, with both countries navigating a delicate balance of economic, strategic, and diplomatic interests.

References:

  1. India's Oil Imports from Russia Surge, Despite U.S. Pressure
  2. India's Oil Imports from Russia Reach Record High
  3. India Hedges Russian Oil Imports Amid U.S. Pressure
  4. U.S.-India Trade Tensions Escalate Over Russian Oil Purchases
  5. India's Russian Oil Imports Rise Despite Global Crude Imports Drop
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