India should cease purchasing oil from Russia, as asserted by Trump's advisor Navarro.
India's purchases of Russian oil have been a source of contention between New Delhi and Washington, with the Trump administration imposing a 25% tariff on many Indian imports involving Russian-origin oil. The tariffs, set to take effect on August 27, 2025, are part of a broader strategy by President Donald Trump to exert pressure on Russia to reach a peace deal with Ukraine.
The U.S. government's move comes in response to India's continued imports of Russian oil amid Western sanctions on Russia. The Trump administration believes that these purchases are helping to finance Russia's war against Ukraine. In addition to the tariffs, Trump has threatened further punitive measures, including potential 100% tariffs if India does not reduce its Russian oil purchases.
India's foreign ministry has expressed its dissatisfaction with being singled out for buying Russian oil while both the U.S. and European Union continue to purchase certain goods from Russia. Indian officials maintain that there is no official government directive to stop buying Russian oil, reflecting a nuanced and somewhat resistant stance against U.S. pressure.
India's reliance on Russian oil accounts for roughly 35% of its supplies. Shifting away from this source could raise India's oil import bill by up to $14 billion annually due to costlier alternatives. However, Indian refiners have accelerated purchases of non-Russian crude as part of diversification efforts, likely influenced by international diplomatic pressures and evolving sanctions regimes.
Despite the tariffs and diplomatic tensions, bilateral trade between India and Russia remains substantial, with oil and fertilizer trades totaling over $65 billion in 2024. Indian Prime Minister Narendra Modi is scheduled to meet with Chinese President Xi Jinping at the end of this month, potentially adding another layer of complexity to India's foreign policy decisions.
The U.S. tariffs could delay negotiations over a trade agreement and hamper efforts to delay the new U.S. tariffs from taking effect on August 27. The planned visit by U.S. trade negotiators to New Delhi from Aug. 25-29 has been called off, adding to the growing tension between the two nations.
As the Trump-Putin summit took place in Alaska last week, Peter Navarro, a key Trump administration trade advisor, criticized the Biden administration for largely looking the other way at India's purchases of Russian oil. Navarro wrote in the Financial Times that India needs to stop buying oil from Russia if it wants to be a strategic U.S. partner. However, the Biden administration has yet to announce any similar measures against India.
In a twist, President Donald Trump is holding off on China sanctions over purchases of Russian oil, potentially indicating a more nuanced approach to oil-related sanctions than previously thought. The U.S. Treasury has added sanctions on entities involved in shipping Russian oil, some connected to shipments destined for Indian refiners, while India has publicly condemned European sanctions related to Russian oil.
As the world watches the evolving situation, India finds itself in a delicate balancing act, trying to navigate the cost savings from discounted Russian oil while avoiding the risk of escalating U.S. sanctions. The future of India-U.S. relations remains uncertain, with many questions about the long-term implications of the current tariffs and sanctions still unanswered.
[1] Reuters, "India's oil imports from Russia hit record high as U.S. tariffs loom," 2025. [2] Financial Times, "India condemns EU sanctions on Russian oil," 2024. [3] Bloomberg, "India's Oil Imports from Russia Fall as Refiners Buy More Non-Russian Crude," 2025. [4] The Wall Street Journal, "Trump Threatens Tariffs on India over Russian Oil Purchases," 2025. [5] Indian Express, "India-Russia trade crosses $65 billion in 2024," 2025.
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