India Continues Russian Oil Imports Despite Trump’s Tariff Threats, Cites Economic Necessity and Global Norms

New Delhi: In a direct response to recent remarks by U.S. President Donald Trump and the imposition of a 25% tariff on Indian imports, Indian oil refiners have made it clear they will continue to import crude oil from Russia, citing economic rationale and adherence to global trade norms.

Despite Trump’s public statement on Saturday that India may have stopped buying oil from Russia — a move he termed a “good step” — top government and industry sources have confirmed that oil imports from Russian suppliers remain active and are crucial to India’s energy security.

According to sources familiar with the matter, Indian Oil Marketing Companies (OMCs) have evaluated multiple factors such as price competitiveness, grade quality, logistics, and supply consistency before finalising procurement contracts. They emphasized that Russia is not under formal sanctions by either the U.S. or the European Commission, and therefore, purchasing oil from Moscow does not violate any international agreement.

“India imports nearly 85% of its crude oil needs, and our procurement decisions are strategic and within the limits of international norms,” a senior official said.

The OMCs have not sourced oil from Iran or Venezuela, both of which are currently under U.S. sanctions, reinforcing India’s commitment to observing sanctioned boundaries. In contrast, Russian crude has remained within the price cap framework recommended by the West.

As per U.S.-backed guidelines, Indian companies have complied with the $60-per-barrel cap on Russian crude. A new European Union cap of $47.6, set to take effect in September, will be reviewed, but Indian refiners insist their purchases already reflect market-aligned pricing.

This clarification comes amid growing geopolitical pressure after Trump’s recent claim: “I understand that India is no longer going to be buying oil from Russia. That’s what I heard. I don’t know if that’s right or not. That is a good step. We’ll see what happens.” However, no official communication between Washington and New Delhi confirming a change in oil sourcing policy has been made public.

India, as the third-largest energy consumer globally, has balanced its energy diplomacy amid a complex web of supply disruptions, sanctions, and shifting alliances post the Russia-Ukraine conflict. In 2022, the war led to global oil price surges, with Brent crude peaking at $137 per barrel, causing widespread panic about oil scarcity.

Today, Russia remains one of the world’s top oil producers, generating approximately 9.5 million barrels per day, and exporting nearly 6.8 million barrels daily in crude and refined products. Its exports have become an important channel for countries like India that seek cost-effective fuel for domestic consumption.