India is actively ramping up its purchases of Russian oil, disregarding threats and tariffs imposed by US President Donald Trump. According to the Center for Research on Energy and Clean Air, India spent €3.1 billion on Russian fossil fuels last month, establishing itself as the second-largest buyer after China. Notably, imports of crude oil surged by 11% month-over-month, totaling €2.5 billion. Private refineries accounted for a significant portion of this expenditure, and state-run refineries nearly doubled their purchases in October.
Trump’s hardline approach includes imposing tariffs of up to 50% starting in August, with promises to reduce these tariffs only if India cuts its imports of Russian oil. However, the United States has not disclosed specific conditions or thresholds for a potential tariff reduction. The sanctions imposed on Russian oil companies in December have further complicated the procurement landscape for buyers. Nonetheless, India’s largest refineries, which imported up to two-thirds of their crude oil from Russia, have only recently turned away from new contracts.
This dynamic underscores the delicate balance between India's economic interests and the political demands from the US. Despite pressure from Washington, New Delhi has maintained robust trade relations with Russia, which reflects the country’s commitment to ensuring energy security and supply flexibility amid global uncertainty.
