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    The Financial EconomyThe Financial Economy
    Home»News»Business & Economy

    India Stands Firm on Russian Oil Imports Despite Trump’s Threats: Sources

    India Stands Firm on Russian Oil Imports Despite Trump’s Threats: Sources
    Business & Economy 3 Mins Read
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    India will continue its oil imports from Russia despite mounting pressure from U.S. President Donald Trump, according to senior Indian government sources cited by Reuters on Saturday.

    The report comes amid growing tensions between Washington and New Delhi, triggered by Trump’s recent threats of penalties over India’s continued energy and defense ties with Moscow. In a post on Truth Social last month, Trump warned of additional penalties for countries purchasing Russian arms and oil, on top of a newly introduced 25% tariff on Indian exports to the U.S.

    Speaking to reporters on Friday, Trump claimed he had been informed that India would cease buying Russian oil. However, Indian government officials refuted the assertion, saying there has been “no immediate change” in policy.

    “These are long-term oil contracts,” one senior official told Reuters, emphasizing the complexity of halting oil purchases overnight. Another official added that India’s imports of discounted Russian crude have helped moderate global oil prices amid Western sanctions.

    While the U.S. and European Union have imposed a price cap on Russian crude, India continues to purchase oil below that cap, making it both a legal and economical option. Unlike oil from Iran and Venezuela, Russian crude is not subject to direct international sanctions, the source noted.

    India’s Foreign Ministry, while not offering direct comments on the oil matter, reinforced its stance during a press briefing on Friday. Spokesperson Randhir Jaiswal described India’s relationship with Russia as a “steady and time-tested partnership,” adding that India evaluates energy needs based on market availability and global circumstances.

    The White House has not issued an official response.

    Russia Remains Top Oil Supplier

    Russia remains India’s largest oil supplier, accounting for nearly 35% of its total crude imports. From January to June this year, India imported approximately 1.75 million barrels per day of Russian oil, a slight increase from the previous year, according to Reuters data.

    However, recent market shifts may affect future imports. Indian state-run refiners — including Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery — have reportedly paused Russian crude purchases after July’s discounts narrowed to their lowest levels since sanctions began in 2022.

    Additionally, Nayara Energy — a major private buyer of Russian oil and partly owned by Russia’s Rosneft — was recently sanctioned by the European Union. The development has disrupted its operations, with its CEO stepping down and several of its oil tankers unable to offload cargo due to the sanctions.

    Geopolitical Tensions Rise

    President Trump, who has made ending the Russia-Ukraine war a key objective since his return to office, has grown increasingly critical of Moscow in recent weeks. His administration has floated the possibility of 100% tariffs on imports from nations continuing to do business with Russia.

    Despite the pressure, India appears determined to pursue its energy strategy independently, emphasizing national interests and market pragmatism over external influence.

    As global diplomatic tensions escalate, the question remains: how far can India navigate its strategic autonomy without triggering broader consequences in its ties with the West? For now, the message is clear—India is not backing down.

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