New Delhi — India has reiterated that it will continue purchasing crude oil from Russia despite mounting pressure from Washington, which has warned of new tariffs and possible secondary sanctions for nations maintaining energy ties with Moscow.
India’s Position: Energy Security Above Geopolitical Pressure
Officials in New Delhi emphasized that India’s energy policy is driven by long-term contracts, national interest, and supply security rather than foreign political demands. “Our crude sourcing is dictated by commercial terms and energy security, not coercion,” a senior government source told reporters.
The reaffirmation comes as the United States, under President Donald Trump, indicated it could impose tariffs of up to 100% and extend sanctions to countries continuing to trade in Russian energy. Despite the warning, India has made no move to halt its Russian crude imports, highlighting its commitment to strategic autonomy in critical sectors.
Import Trends and Market Adjustments
Russian oil accounts for roughly 35% of India’s total imports, averaging 1.75 million barrels per day in the first half of 2025—slightly higher than the same period last year. The imports remain economically appealing as Russian barrels continue to trade at a discount compared to Middle Eastern grades.
While state-run firms like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL) have reduced spot purchases due to narrowing discounts, private refiners Reliance Industries and Nayara Energy remain active buyers. Nayara, partly owned by Russian oil major Rosneft, has faced logistical hurdles, including delays linked to sanctions on shipping and insurance.
Contingency Planning and Diversification
Even as India defends its right to buy Russian oil, authorities have quietly urged refiners to diversify sources, particularly from the Middle East and West Africa, to mitigate future supply disruptions if sanctions tighten further. Global oil markets remain volatile, with Brent crude recently trading around $78 per barrel, reflecting concerns about supply security and geopolitical uncertainty.
Diplomatic and Strategic Context
The Ministry of External Affairs reaffirmed India’s “time-tested relationship” with Russia, stressing that it cannot be undone by short-term geopolitical moves. Analysts believe India is unlikely to drastically shift its position but is preparing for possible secondary sanctions that could disrupt insurance, shipping, or payment mechanisms.
The United States, meanwhile, is expected to intensify its enforcement of energy-related sanctions as part of its strategy to limit Moscow’s revenue streams. This could set the stage for a diplomatic standoff, as Washington balances its foreign policy objectives with the need to maintain strong ties with India, a key partner in the Indo-Pacific region.
Energy Security Still Paramount
As the world’s third-largest oil importer, reliant on imports for nearly 85% of its energy needs, India sees continued Russian oil purchases as an economic necessity. “Energy security is non-negotiable for a developing economy like ours,” one Indian official noted.
With talks between India and the US expected later this month, the path forward remains uncertain. However, experts agree that India will prioritize domestic energy stability and strategic independence even as it navigates external diplomatic challenges.