India persists in purchasing oil from Russia despite NATO's threat, it confirms.
India's imports of Russian crude oil have remained high despite warnings of secondary sanctions from NATO, reaching an 11-month high in June 2025 at approximately 2.08 million barrels per day (bpd), accounting for around 42% of India's total crude oil imports[1][2]. Russia continues to be India's largest crude supplier in the first half of 2025, largely due to steep discounts on Russian oil following Western sanctions after Russia's invasion of Ukraine[1].
India has adopted a stance of strategic autonomy, asserting its right to buy oil from wherever it gets the best deal, as long as it is not under formal sanctions. This approach has enabled India to benefit from discounted Russian crude oil prices, which are capped at $60 per barrel—significantly lower than prevailing global rates[2]. More than half of the Russian crude imported is processed by three Indian refineries that export refined products to G7 countries[2].
The threat of secondary sanctions and additional tariffs, such as those suggested by former US President Trump and NATO Secretary-General, could potentially price Indian exports of Russian-origin refined products out of the international market[2]. However, Indian officials have expressed skepticism about such threats, questioning whether Europe itself would face similar tariffs for buying Russian energy[2].
Petroleum Minister Hardeep Singh Puri has publicly stated that India is unfazed by these sanction threats, highlighting that Russia contributes about 10% of global oil production and that excluding Russian oil would drive prices dramatically higher, possibly to $120-$130 per barrel[3]. He emphasized that India's continued purchases help stabilize global energy prices and that if sanctions disrupt this, it would lead to severe price volatility[3]. Moreover, he suggested that global geopolitical threats might be a negotiation tactic rather than an immediate enforcement of sanctions[3].
The potential impact of halting Russian oil imports would be significant for India, given its reliance on imports for over 85% of crude oil needs. Searching for alternative suppliers would likely increase India's import bill substantially, which could translate into higher domestic fuel prices for consumers[2].
In summary:
| Aspect | Current Status and Impact | |------------------------------|--------------------------------------------------------------| | Russian oil imports | At an 11-month high (2.08 million bpd), ~42% of India's crude imports | | India's stance | Strategic autonomy; imports Russian oil at discounts | | Sanction threats | India remains unconcerned; debates double standards | | Potential sanctions impact | Could price out Indian exports of Russian-origin products | | Economic impact on India | Higher import bills and domestic fuel prices if imports stop | | Global market effect | India believes Russian oil imports help stabilize prices |
Thus, India's oil purchases from Russia continue robustly amidst sanction threats, with the government confident in managing risks without disrupting imports significantly[1][2][3]. The government's commitment is to the Indian consumer, and securing energy needs remains a priority for India[4]. New players entering the oil market are expected to bring crude prices down, providing some relief to India's oil import costs[5]. Despite the challenges, India has demonstrated its ability to manage even after the sanctions in January[6].
- As the global financial landscape evolves, India is also exploring opportunities in sectors like forex trading, finance, and DeFi markets.
- The Indian government's strategic approach to trading negotiations extends beyond oil, as they are considering the potential benefits of entering the global sports market.
- With the ongoing volatility in the crude oil market, analysts are predicting a shift towards renewable energy and green finance in the near future, which might significantly affect the economy.
