Key Points
- India says it will continue buying Russian oil despite threats of penalties from the U.S.
- The government cites long-term contracts and says its purchases help stabilize global oil prices.
- President Trump has threatened 100% tariffs on countries that buy Russian oil.
- EU sanctions on a Russian-owned refiner in India are already causing significant business disruptions.
India plans to continue purchasing oil from Russia, directly challenging U.S. President Donald Trump’s threats of penalties, two Indian government sources said Saturday. The statement comes after Trump suggested India was halting its purchases and threatened severe tariffs on countries that continue to trade with Moscow.
The Indian sources explained that the country is locked into long-term contracts that cannot be stopped overnight. They also argued that India’s purchases of Russian crude have helped keep global oil prices stable by preventing a major supply shock. One source noted that India buys Russian oil below the price cap set by Western nations, and the oil itself is not under the same direct sanctions as oil from Iran or Venezuela.
India’s foreign ministry reinforced this stance, describing the country’s relationship with Russia as a “steady and time-tested partnership” and stating that its energy purchases depend on market availability and global circumstances.
However, while the government is talking tough, the situation on the ground is more complicated. Indian state-owned refiners have recently paused their purchases of Russian crude. Sources say this is a business decision, not a political one, as the discounts on Russian oil have shrunk, making it less financially attractive.
Adding to the pressure, the EU recently sanctioned Nayara Energy, a major refinery in India that is majority-owned by Russian entities. This has already caused disruptions, with the company’s CEO resigning and several oil tankers unable to unload their cargo.
