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Russia’s ‘Secret Oil Route’: How Moscow Plans to Bypass US Tariffs

Russia has promised uninterrupted oil supply to India despite U.S. and EU sanctions, revealing a “special mechanism” to bypass restrictions.

Published By: Prakriti Parul
Last Updated: August 21, 2025 09:30:25 IST

In a bold rebuttal to Western pressure, senior Russian officials have declared that Moscow has developed a “very special mechanism” to shield oil trade with India from U.S. and European sanctions. The assurance comes just days before U.S. President Donald Trump’s 25% punitive tariffs on Indian exports are set to take effect, further straining New Delhi’s ties with Washington.

Moscow Promises Oil Flow Will Not Stop

Russia, which accounts for nearly 40% of India’s crude oil supply, insisted that sanctions would not derail shipments. Deputy trade commissioner Evgeny Griva said Moscow is confident of sustaining supply chains.

“Despite the political situation, we can predict that the level of crude oil imports would be approximately the same,” Griva said. “There are some mechanisms to supply crude oil. We can’t discuss it because it’s really a very special mechanism.”

Chargé d’affaires Roman Babushkin added that India-Russia ties have weathered many external challenges before. “Each and every time, we have managed to succeed in finding ways to cooperate further based on our mutual national interests,” he said.

Oil Sanctions and India’s Reliance

India became the second-largest buyer of Russian oil after the Ukraine war forced Europe to cut ties with Moscow. While China remains the biggest importer, India’s crude purchases from Russia soared after 2022, despite Western criticism.

The Vadinar refinery in Gujarat, partly owned by Russian giant Rosneft, has been central to this energy partnership. Despite being targeted under EU sanctions, Russian officials said its operations have not been disrupted.

“Sanctions against Russia won’t impact oil supply much, because we have already reduced reliance on EU shipping and insurance services,” Babushkin said.

Defence Cooperation: Tested in Battle

Energy isn’t the only area where Russia remains crucial to India. Babushkin reminded reporters that Moscow continues to be India’s “partner of choice” in defence, citing the joint development of the BrahMos missile and the deployment of S-400 air defence systems.

He pointed to Operation Sindoor, launched on May 7 in retaliation to the Pahalgam terror attack, as proof of Russian weaponry’s effectiveness. During the hostilities with Pakistan, India deployed Su-30 fighter jets armed with BrahMos missiles and used S-400 systems to shoot down a surveillance aircraft.

Babushkin said Russian firms are likely to play a role in India’s Sudarshan Chakra long-range air defence shield, unveiled by Prime Minister Narendra Modi on Independence Day. The system is expected to be fully operational by 2035.

Bilateral Trade and the $100 Billion Target

Beyond oil and defence, Russia and India are working to boost bilateral trade to $100 billion by 2030. Trade reached a record $68.7 billion in 2024-25, though Indian exports accounted for only $4.88 billion – a gap Moscow says it is keen to reduce.

“We will remove barriers to trade, facilitate business interactions, and push alternative logistics corridors,” Babushkin said. “Our payments and transaction systems are also being modernized to bypass Western restrictions.”

Also Read: Russian Oil Trade Shifts from India to China Amid Trump’s Tariff Threats

Setting the Stage for Putin’s Visit

The Russian remarks came hours after Indian External Affairs Minister S. Jaishankar arrived in Moscow for talks with Sergey Lavrov and Deputy Prime Minister Denis Manturov. These discussions form part of preparations for President Vladimir Putin’s annual summit with Prime Minister Narendra Modi later this year.

Putin has already spoken to Modi twice this month, briefing him on Ukraine and his summit with Trump in Alaska. The agenda for the Indo-Russian summit will cover energy, defence, trade, infrastructure, and nuclear cooperation, including modular reactors.

With Washington ramping up tariffs and Moscow vowing to shield India from sanctions, the standoff highlights India’s delicate balancing act. As one of the few countries straddling strong ties with both the West and Russia, New Delhi’s choices in the coming months could redefine its global standing.

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The Daily Guardian is India’s fastest growing News channel and enjoy highest viewership and highest time spent amongst educated urban Indians.

© Copyright ITV Network Ltd 2025. All right reserved.