India Signals No Policy Shift on Russian Oil Imports Amid Trump’s Tariff Threats

Despite recent remarks and tariff threats from U.S. President Donald Trump, the Indian government has indicated that it will continue importing oil from Russia, reaffirming its long-standing strategic energy partnership with Moscow.

Multiple senior Indian officials have confirmed that no directive has been issued to restrict or reduce crude oil imports from Russia. The statements came in response to President Trump’s assertion that he had received information suggesting India would stop purchasing Russian oil—remarks that were interpreted as part of a broader pressure campaign targeting countries engaged in trade with Russia amid the ongoing war in Ukraine.

While Trump praised the alleged decision as a “good step,” Indian government sources clarified that there has been no change in policy. Officials emphasised that India’s energy procurement decisions are based on economic rationale, long-term contracts, market conditions, and global geopolitical developments—not external pressure.

The Ministry of External Affairs also reiterated India’s position during its weekly briefing, underlining the strength of its “steady and time-tested” relationship with Russia. The ministry noted that India assesses its energy needs based on global availability and prevailing circumstances, reaffirming the nation’s autonomy in determining its strategic sourcing policies.

President Trump recently formalised a 25% tariff on Indian exports through an executive order and hinted at further penalties targeting countries that continue to engage in oil trade with Russia. However, his order did not include any specific penalties related to India’s energy dealings—though such actions remain under consideration, according to reports.

India’s oil imports from Russia have surged significantly over the past two years. From just 68,000 barrels per day in January 2022, purchases jumped to over 2.1 million barrels per day by May 2023, making Russia India’s largest oil supplier. Officials have argued that these imports have not only helped meet domestic energy demands but also contributed to global price stability, as Russian oil has been traded below the European Union’s price cap and outside the scope of direct sanctions.

Unlike Iranian or Venezuelan oil, Russian crude remains legally accessible under international law, and India has leveraged this access to secure cost-effective energy supplies critical to its economic growth.

Indian authorities are also mindful of their long-term agreements with Russian suppliers, many of which are not easily altered without economic and logistical consequences. Sources noted that immediate disruptions are unlikely, particularly given the absence of direct legal prohibitions and the ongoing volatility in global oil markets.

While the U.S. administration has voiced frustration over the continued trade between India and Russia, particularly amid stalled peace efforts in Ukraine, Indian officials remain firm on safeguarding national energy interests and resisting external pressure that could compromise economic stability.

Reference: Reuters, AP news

Source: Maritime Shipping News