In a major step that is a display of India’s energy independence, India to maintain Russian oil imports—a move confirmed by multiple government sources. This comes at a time when Trump is threatening what may be record economic penalties and tariffs, marking a significant shift in Indo-US relations and the broader global energy play.
India’s energy security is seen as free from the influence of external political factors. According to government officials who did not wish to be named, India to maintain Russian oil imports is a decision based on long-term energy agreements and core national interests.
Trump’s Tariff Provisions Are Rejected by India
President Trump announced a 25% tariff on Indian imports which also saw him impose more penalties for Russian oil bought in by the former, which he said until they reach a peace deal with Ukraine, he would go to 100% tariffs on any country including that of India which is very much in the Russian oil energy business.
These in a senior government of India’s words — “we have large scale oil contracts. That which is not so easy is to just stop buying Russian oil overnight.” This is what we may term as India’s practical approach to energy purchase, which also includes keeping Russian oil in the mix for economic and strategic reasons.
Trump’s threats have grown after it came out that Indian state refiners put off Russian oil purchases for a while, which in turn saw discounts shrink. Also that temporary drop in purchases was a result of market forces as opposed to political pressure which we see Russian oil discounts at their lowest since 2022.
India’s Energy Security: The Issue of Russian Oil Imports’ Strategy
India to maintain Russian oil imports as part of its strategy to ensure national energy security. India currently imports around 85–88% of its crude oil needs, which in 2024 translated to a daily 5.8 million barrels. Russia has emerged as India’s largest oil partner, contributing to 35–40% of total imports, with 2025 figures showing daily deliveries of approximately 1.75 million barrels.
The economic rationale behind India to maintain Russian oil imports lies in the favorable trade terms. In FY2025, Russian oil worth $50.3 billion accounted for a significant share of India’s total $143.1 billion in crude imports. These discounted purchases have enabled India to stabilize domestic fuel prices while also improving refining margins.
“Our energy sourcing is a function of what is present in the market and the global situation,” which is the case in India’s approach to import Russian oil, which we see plays into both commercial and strategic interests.
Geopolitical Implications: India’s Role in Global Energy Markets
The issue of continuing to import Russian oil is part of India’s larger geopolitical strategy of pursuing what it terms strategic autonomy, which in turn sees it manage relationships with great powers. Unlike China and Turkey, which are large-scale importers of Russian oil, India has its own issues including being a democracy and having a large strategic partnership with the United States.
Russian oil’s role in India’s import mix grew post February 2022 Ukraine invasion which in turn saw Western sanctions open up space for discounted Russian oil to pour in. India’s import of Russian oil went from a meager 68,000 barrels per day in January 2022 to 1.12 million barrels per day by June 2022. The peak was achieved in May 2023 at 2.15 million barrels per day.
India’s turn to Russia for oil imports has played a role in keeping stable oil prices as government sources put it. “India’s import of Russian oil has been a factor which has prevented a worldwide rise in oil prices which in fact have been contained despite Western sanctions on the Russian oil sector.”
Economic Realities: Market Forces Drive Energy Choices
India’s economic calculus behind the decision to maintain Russian oil imports is complex. Though Russian oil discounts, which used to be in the range of $20-30 per barrel, have shrunk to $2.5-4 at present, the large scale and the in-place trade relations which India has with Russia still bring value.
Indian refiners had to change their buying strategies with the market conditions. In July 2025, when Russian discounts decreased, state-owned refiners went to other suppliers including Iraq, Saudi Arabia, the United Arab Emirates, and the US. At the same time, private refiners like Reliance Industries and Nayara Energy were still purchasing Russian oil via annual contracts.
India’s push to import from Russia continues a trend of expanding supply bases, which has seen the number of import sources grow from 27 to almost 40 countries. This diversity of supply provides flexibility and security of access to Russian crude.
Trump’s Challenges in the Diplomatic and Economic Spheres
Trump put forth that India would no longer be buying oil from Russia, which was soon refuted by Indian government sources. The New York Times reported that senior Indian officials confirmed no policy changes; also, an official noted that the government had not given any direction to oil companies to reduce Russian imports.
Diplomatic tension is growing as India goes against the U.S. grain to maintain its Russian oil imports, which challenges Trump’s larger agenda of economic pressure on Russia. Secretary of State Marco Rubio reported that India is an “ally” but at the same time described Russian oil imports as a “point of irritation” in bilateral relations.
Despite what the U.S. may push for, India’s energy minister Hardeep Singh Puri reported that other options are available, India is going to use them, and also stood by present policies. “I am not feeling any external pressure, we have diversified our supply bases,” Puri said, also noting that there is enough global supply out there for India’s energy security.
Global Market Impact and Future Implications
India’s determination to maintain Russian oil imports has large-scale implications for global energy markets. As the world’s third-largest oil consumer, which in turn plays a key role in international crude prices and supply, India’s decision is of great note.
Market reports indicate that removing Russian oil from India’s import mix would require large-scale trade restructurings and may cause price volatility. Also, J.P. Morgan reports that should disruption in Russia-India oil trade occur, Moscow may respond by closing off strategic pipelines used by Western oil companies.
India is seeing an increase in crude oil imports from other suppliers, which in the first half of 2025 saw it take in 271,000 barrels per day from the U.S.—a 51% rise. But these increases are in addition to Russian imports, showing that India is dedicated to energy diversity without giving up affordable Russian options.
The ongoing saga of India to maintain Russian oil imports represents more than an energy trade dispute—it embodies India’s assertion of strategic autonomy in an increasingly polarized world. As global powers attempt to weaponize trade relationships, India’s steadfast approach to energy security may set precedents for other emerging economies facing similar pressures.
India’s message remains clear: national energy security transcends bilateral political pressures, and the country will continue making energy procurement decisions based on commercial viability and strategic interests rather than external coercion.
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