US and EU criticized for perceived unfair action against India's Russian oil buyings, Indian government voices strong disapproval
India's significant increase in oil purchases from Russia has become a subject of global interest, particularly affecting trade relations with the U.S. and the EU. Last month, the EU and Britain sought to ramp up economic pressure on Russia to halt the war in Ukraine by slashing a price cap meant to choke off revenues from key oil exports. However, India's Foreign Ministry spokesman, Randhir Jaiswal, stated that the targeting is unjustified and unreasonable.
Economically, India's oil imports from Russia have provided cost-effective energy, essential for its energy security strategy. The discounted oil, a result of Western sanctions, has helped India secure affordable energy supplies. However, if India stops buying Russian oil due to U.S. tariffs or international pressure, its crude oil import bill could increase by approximately $9 billion in FY26 and $12 billion in FY27. This is because Russia’s discounted oil has been crucial in securing cost-effective energy supplies.
On the trade front, the U.S. tariffs impose a direct economic cost on India by making its exports to the U.S. less competitive, which could affect broader bilateral trade relations. The U.S. has imposed steep tariffs on Indian goods (up to 50%), signaling strained economic ties driven by sanctions against Russia amid the Ukraine conflict. India has criticized these tariffs as "unfair, unjustified, and unreasonable," highlighting the tension between India's energy needs and U.S. geopolitical objectives.
India's stance reflects a balancing act in its foreign policy—prioritizing energy security and cost while managing complex relations with Russia, the U.S., and the EU. The continuation of Russian oil imports under discounted terms helps India maintain affordable fuel prices but invites economic retaliation from Western allies, complicating its trade and diplomatic landscape.
The European Union's trade with Russia includes various goods such as fertilizers, mining products, chemicals, iron and steel, machinery, and transport equipment, in addition to energy. Unlike India, such trade by the EU and US is not a vital national compulsion. The EU, while aligned with U.S. sanctions on Russia, has shown less direct punitive trade action against India but remains part of the broader pressure on Russian oil buyers.
In summary, India's oil purchases from Russia:
- Economically provide cost-effective energy but risk higher import bills if halted.
- Trigger punitive U.S. tariffs (up to 50%) on Indian exports, straining U.S.-India trade relations.
- Create tension with the EU aligned broadly against Russian sanctions, though EU tariff responses are less direct than the U.S.
- Reflect India’s strategic balancing between securing affordable energy and managing geopolitical pressures from Western nations.
Notably, former U.S. President Donald Trump stated on his Truth Social platform that India was buying "massive amounts of Russian Oil" and selling it for "big profits." Starting Thursday, an existing 10% U.S. tariff on Indian products is expected to rise to 25%. India will take all necessary measures to safeguard its national interests and economic security.
India, the world's most populous country, was one of the first major economies to engage in broader trade talks with the Trump administration. At the time, Washington actively encouraged such imports by India for strengthening global energy markets stability. Despite the current challenges, India continues to navigate its foreign policy with a focus on securing its energy needs and economic security while maintaining complex relations with global powers.
- In the realm of international politics, India's oil imports from Russia, while helping maintain cost-effective energy and energy security, pose a potential risk of increasing import bills if halted and may invite economic retaliation from Western allies.
- Amidst the ongoing war-and-conflicts in Ukraine, India's oil purchases have become associated with policy-and-legislation, as the U.S. has imposed tariffs and threatened to raise them further, complicating general-news narratives about India's foreign relations and trade with global powers.
