Overview

• On August 1, the US formalized a 25% tariff threat on goods from India over its continued Russian oil imports.
• Foreign Ministry spokesman Randhir Jaiswal said there is no change in policy and no instruction to oil companies to alter existing long-term contracts.
• India accounts for nearly 40% of its crude imports from Russia at about 1.12 million barrels per day, taking advantage of steep post-invasion discounts.
• Experts warn that cutting off Russian oil would leave India at a disadvantage if China and Turkey continue enjoying discounted supplies.
• India’s market-driven approach prioritizes affordable and reliable energy supplies as domestic demand grows.