India’s growing appetite for Russian oil has drawn sharp criticism from former U.S. President Donald Trump, who recently threatened to impose a 25% tariff on Indian goods, calling out the country’s continued energy trade with Russia.
India emerged as one of the biggest buyers of Russian crude following the 2022 invasion of Ukraine. As Western nations imposed sanctions and reduced their oil imports, Russia turned to Asia, offering steep discounts. India seized the opportunity.
Before the war, Russian oil made up a mere 0.2% of India’s crude imports. But by mid-2023, that figure had skyrocketed to over 45%, with India importing more than two million barrels per day; second only to China in Russian oil purchases.
India’s refineries, particularly those operated by Reliance Group owned by billionaire Mukesh Ambani; benefited massively from the influx of cheaper crude. The company’s stock surged by 34% during this period, while U.S. oil giants like ExxonMobil saw little movement.
According to Bsgistnews, we gathered that India’s purchase of discounted Russian oil helped shield its economy from global inflation shocks, stabilized its currency, and fueled export-driven profits through refined petroleum products sold abroad, including back to Europe.
Still, Trump’s harsh rhetoric marks a sudden shift in tone. While he has often criticized India’s trade practices, this marks one of his first direct confrontations over oil. His administration is reportedly eyeing the $44 billion U.S. trade deficit with India, pressing Prime Minister Narendra Modi to consider American oil and gas imports instead.
But that move could appear as a concession, which may not sit well with Modi’s nationalist base. Trump’s recent social media posts also deepened tensions, stating, “India and Russia can take their dead economies down together, for all I care.” He went further by floating the idea of U.S. firms exploiting oil in Pakistan, India’s longtime rival and possibly selling it to India in the future.
Kpler, a commodities and shipping data firm, notes that Indian refiners have started scaling back slightly on Russian imports, but emphasized that a full shift away from Russian crude would be “costly, complex, and politically fraught.” Indian refineries are optimized for the denser, more sulfurous Russian blend; making quick replacements difficult.
Despite looming tariff threats, India’s economy remains one of the fastest-growing globally. Ajay Srivastava, founder of the Global Trade Research Initiative, defended India’s decision, stating that Russian oil helped tame inflation during global volatility. He believes the proposed U.S. tariff is more of a pressure tactic than a firm policy shift.
“India has avoided the trap of a one-sided deal,” Srivastava said in a text message. “And that’s a success.”
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