WASHINGTON D.C. — US officials are growing increasingly unhappy with India’s ongoing imports of discounted Russian oil, accusing India of choosing economic interests over joining global efforts to end the war in Ukraine.
Their criticism follows a sharp rise in India’s purchases of Russian crude since 2022, despite Western oil sanctions put in place to reduce Moscow’s ability to fund its military.
President Donald Trump has answered with threats of new tariffs, including a 25% levy on Indian goods and an extra penalty for buying Russian oil. These steps are part of his wider push to pressure Russia into stopping the fighting.
India’s Growing Oil Trade with Russia
India stands as the world’s third-largest oil buyer, and since the Ukraine conflict started, it has become one of Russia’s main customers. Russian oil made up less than 1% of India’s imports before the war, but by 2024, the figure had climbed to almost 40%.
Russia now supplies about 35% of India’s oil needs, equal to roughly 2 million barrels each day, based on industry figures. The move towards Russian oil is driven by low prices, which help India control inflation and support its major role as a fuel supplier to the EU.
Indian officials defend their choices, pointing to the nation’s huge population and its status as a developing country needing affordable energy. Foreign Ministry spokesman Randhir Jaiswal said at a recent press call that India’s energy deals reflect market realities and national needs.
Oil Minister Hardeep Singh Puri argued that pulling Russian oil off the market could drive global prices up to $130 or $140 a barrel, making inflation worse everywhere. Ajay Srivastava, a former trade official, said India’s actions help steady world oil prices, offering a benefit beyond its borders.
US Points the Finger and Threatens New Tariffs
US leaders see India’s oil trade with Russia as undercutting attempts to isolate Moscow. Secretary of State Marco Rubio told Fox Radio that India’s purchases keep Russia’s military effort going and are hurting US-India ties. In Washington, many share the view that India’s trade with Russia, including its military deals, helps the Kremlin continue its attacks in Ukraine.
Trump raised the pressure on July 30, 2025, announcing a 25% tariff on all goods from India, starting August 1, and an extra penalty for ongoing Russian oil deals.
On Truth Social, Trump said India charges high tariffs on US products while acting as Russia’s “largest energy buyer, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE.”
He also warned that if Russia does not agree to a peace deal by August 8, he would consider extra tariffs of up to 100% on nations buying Russian oil, shortening his earlier deadline out of frustration with President Putin’s lack of progress.
Trump’s Approach to the Ukraine Crisis
Trump’s tariff plans are part of his larger goal to end the Ukraine war, which began with Russia’s invasion in February 2022. The US has sent nearly $67 billion in military aid to Ukraine.
Trump has promised to send top weapons like the Patriot missile system, working with NATO and European partners, to help Kyiv. He has spoken more forcefully against Putin, especially after Russian criticism of Ukrainian President Zelenskyy. Trump told NBC News he was “pissed off at Putin,” making it clear he plans to use economic measures to pressure both Russia and its trading partners.
Several experts doubt that Trump’s tactics will work. Matt Gertken, a strategist at BCA Research, pointed out that Russia sells oil with a “shadow fleet” of tankers, allowing exports to India and China despite sanctions.
Gertken thinks Trump’s secondary tariff threat may be meant to bring countries to the table, rather than stop India from buying Russian oil outright. India could look to other sources or keep using the shadow fleet to manage any new penalties.
India’s Steady Approach
India has so far resisted US demands to stop buying from Russia. Two senior officials, quoted by The New York Times on August 2, said there is no change in policy. Government sources explained that purchasing by Indian refiners—state-owned and private—depends on price, oil quality, shipping, and economics.
Although Reuters noted a brief pause in Russian oil buys by some state-owned firms when discounts shrank and tariffs loomed, officials confirmed there was never a formal order to halt imports.
India’s position reflects its deep ties with Russia, not just in energy, but also in defence. India has refused to back Western sanctions on Russia, insisting only United Nations sanctions are binding. Foreign Secretary Vikram Misri recently criticized what he called “double standards” in Trump’s tariff threats, noting that some EU countries still benefit from Russian oil, though in processed form from India.
The threat of new tariffs adds to ongoing challenges in US-India relations. The US held a $45.8 billion trade gap with India in 2024, and Trump has often complained about India’s high tariffs on American goods. Talks aimed at doubling trade to $500 billion by 2030 have made little headway, especially over US demands for more access to Indian agriculture and dairy markets.
Keeping Russian Crude Flowing
Some experts think Trump’s focus on India is a way to target Russia, since China and Turkey, also major Russian oil buyers, have not faced the same penalties. But this risks upsetting India, which is seen as an important balance to China in Asia. An editorial in NDTV warned that Trump’s tactics could harm the US-India partnership and urged Indian leaders to take care in choosing their next steps.
India’s steady purchase of Russian oil is felt far beyond its borders. By keeping Russian crude flowing, India has helped prevent global oil prices from surging even higher; some estimates say prices could have topped $137 per barrel otherwise.
At the same time, India’s exports of refined fuels made from Russian oil now make it Europe’s top supplier, prompting Western critics to accuse the EU of hypocrisy for benefiting indirectly from India’s trade.
As Trump’s August 8 deadline nears, there is close attention on whether India will change course or continue siding with its economic interests. So far, Indian leaders remain firm, balancing their ties with both Washington and Moscow while keeping energy prices low for the country.
