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30m ago

India Maintains Russian Oil Purchases Despite U.S. Tariffs

New Delhi’s refiners cite long-term contracts alongside discounted Russian crude to justify continuing purchases under steep U.S. tariffs

FILE - An oil tanker is moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11, 2022, one of the largest facilities for oil and petroleum products in southern Russia. (AP Photo, File)
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Overview

  • On July 30, President Trump imposed a 25% tariff on Indian imports and threatened additional penalties over New Delhi’s energy and military ties with Russia.
  • The Ministry of External Affairs and state oil companies have publicly denied any halt in Russian crude imports, pointing to binding long-term supply contracts.
  • India’s use of discounted Russian oil has helped stabilize domestic fuel prices even as its U.S. crude imports surged by more than 50% in the first half of 2025.
  • Kpler and other analysts warn that a forced shift away from Russian crude could boost India’s annual oil import bill by $9–11 billion as the EU readies curbs on refined exports.
  • With U.S.–India trade talks set for August 25, Indian economic ministries are drafting tariff concession proposals while exporters in textiles and steel seek urgent government relief.