Indian officials have made it clear that the country will continue buying crude oil from Russia, rejecting recent remarks made by U.S. President Donald Trump. According to a report by ANI, this statement comes just as Washington plans to introduce new sanctions against countries maintaining energy relations with Moscow amid the war in Ukraine.
Trump’s Assumption Met With Denial
While speaking to reporters on Friday, Trump said, “Well, I understand India no longer is going to be buying oil from Russia. That’s what I heard. I don’t know if that’s right or not,” calling the move a “good step.” His comment came only days after he accused India of maintaining strong trade and defense ties with Russia.
However, government sources from India, quoted by ANI and Reuters, dismissed Trump’s claim. One official clarified, “There has been no change in policy. Oil companies make sourcing decisions based on price, quality, logistics, and market conditions. No directive has been issued to stop Russian imports.”
Russia Still Among India’s Top Oil Suppliers
India is the third-largest oil importer in the world, and since the start of Western sanctions on Russia, it has taken advantage of discounted Russian crude. Between January and June this year, India imported around 1.75 million barrels of Russian oil per day, making up 35% of its total crude imports.
An official defended this approach by saying, “Had India not absorbed discounted Russian crude—alongside OPEC+ production cuts—prices could have soared past the 2022 high of $137 a barrel.”
India Complies With International Price Cap Rules
While oil from countries like Iran and Venezuela faces direct U.S. or EU sanctions, Russian crude is handled differently. It falls under the G7-EU price cap mechanism, which seeks to reduce Russia’s revenue while keeping oil supplies flowing globally.
Officials pointed out that Indian oil companies have been following this price cap, and their purchases remain within legal and international guidelines.
Trump’s New Tariffs and Deadlines Add Pressure
Trump’s latest statements coincide with his executive order imposing 25% tariffs on Indian goods, along with a warning of penalties for countries that continue to buy Russian oil or arms. He also issued an August 8 deadline for Russian President Vladimir Putin to end the Ukraine war or face additional sanctions.
Refiners Say Long-Term Contracts Are in Place
Despite growing international pressure, two senior Indian officials told The New York Times that no instructions had been issued to halt Russian oil imports. One official emphasized, “These are long-term oil contracts. It is not so simple to just stop buying overnight.”
There have been reports that Indian refiners, including Indian Oil Corp and Bharat Petroleum, have slowed down new Russian oil orders after discounts dropped to their lowest since 2022. However, officials said this was a business decision, not a political one.
India’s Energy Choices Based on Market Needs
At a weekly briefing, External Affairs Ministry spokesperson Randhir Jaiswal said that India’s energy strategy remains market-driven. He explained, “We take decisions based on price, availability, and the global situation.”
Trump Criticises India’s Trade and Defence Relations
While Trump has often praised India as a “friend,” he has also sharply criticised its trade practices and military cooperation with Russia. He said, “India has the most strenuous and obnoxious non-monetary trade barriers,” while also pointing out that India is still “one of Russia’s top arms and energy customers.”
India Likely to Stick With Current Oil Policy
Indian officials maintain that their oil purchases are not only in the country’s best interest, but also help stabilise the global oil market. Despite growing pressure from the U.S., they have shown no intention of backing down for now.
